Organizational Management: Analyzing Business Frameworks for Uber

This study provides an in-depth analysis of different business frameworks suitable for Uber. It evaluates the strengths, weaknesses, opportunities, and threats of the organization using SWOT analysis and analyzes the environmental factors using PESTEL analysis. It also examines the industry's competitive factors using Porter's five-force analysis. The study suggests some important areas of changes and provides recommendations for improving organizational management.

Running head: ORGANIZATIONAL MANAGEMENT
Organizational Management
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The study has provided detailed overview about the importance of using different business
analytical frameworks. Uber is chosen as the selected company with the help of which the study
has analyzed appropriate framework suitable for business establishment of Uber. By considering
in the position of the CEO, the study has suggested some of the most important areas of changes.
The study has provided some of its major recommendations as well in order to suggest the ways
of improvement on organizational managing process. In comparison to other ride facilitators,
Uber provides immense benefits by offering promo codes, gift vouchers and free ride facilities
and so on. In addition, drivers associated with Uber cab are extremely professional competent.

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Table of Contents
1. Introduction:................................................................................................................................2
2. Different models for company analysis:......................................................................................2
2.1 SWOT analysis:.........................................................................................................................2
2.2 PESTEL analysis:......................................................................................................................5
2.3 Porter’s five-force analysis:.......................................................................................................8
2.4 BCG growth matrix:................................................................................................................10
2.5 Bench marking:........................................................................................................................12
3. Suitable model for Uber and its justifications:..........................................................................14
4. Necessary changes and its implementation:..............................................................................15
5. Recommendations:....................................................................................................................16
6. Conclusion:................................................................................................................................17

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1. Introduction:
Uber technology Inc. is one of the most prestigious transportation network companies
occupying immense organizational glory all over the World. Headquartered in California this
particular organization has widely spread its international network in the market of UK as well
(uber.com 2018). Before making market entry in various geographical boundaries, the
organization has to make different situational, environmental and internal analysis by using
appropriate framework. In order to run the entire process of business in the market of UK the
business experts of Uber have made different environmental analysis in order to understand the
market condition of EURO zone as per current business scenario.
This particular study has provided in-depth knowledge and understanding about these
market as well as environmental frameworks. The study has selected one particular framework,
which seems to be the most suitable for the business analysis of Uber. By considering in the
position of the CEO, the study has suggested some of the most important areas of changes. By
rendering those changes, the organization would be able to gain organizational glory and
reputation more widely in the international market. The study has provided some of its major
recommendations as well in order to suggest the ways of improvement on organizational
managing process.
2. Different models for company analysis:
2.1 SWOT analysis:
SWOT analysis is one of the most effective ways of evaluating the strengths, weaknesses,
opportunities and threats of the organization. In order to survive in the market of UK this

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particular organization needs to evaluate its necessary strengths and weakness. Based on that
evaluation, the company can make effective business strategy and policy (Hill, Jones and
Schilling 2014). Based on the weaknesses, the competitors can get the opportunities in gaining
advantages. Therefore, the organization should identify their weaknesses so that they can
improve those areas and enhance the level of market opportunity.
Application for the company:
In case of evaluating the strengths of Uber, it is observed that the organization is
possessed with several strong aspects, which help the company in maintaining their business
sustainability in the market of UK. The service procedure of the company is very fast with the
help of which the customers do not have to wait for the long time in using its ride facilities
(Ginter, Duncan and Swayne 2018). In comparison to other ride facilitators, Uber provides
immense benefits by offering promo codes, gift vouchers and free ride facilities and so on. In
addition, divers associated with Uber cab are extremely professional and expert. They know on
how to communicate with the customers. The riders are safe and secured for the service users.
Therefore, the customers can rely on the service methods structured by the business experts of
Uber. One of the major weaknesses of this organization is limited workforce strength (Stead and
Stead 2014). As a result, the business experts cannot fulfill the demands of large number of
customers at a time.
Sometimes, the services become unavailable which fails to meet urgent requirement of
customers. In this kind of situation, customers tend to show their dissatisfaction level after being
unable to receive the services from the business experts (Elmes and Barry 2017). As per business
opportunity, the organization has immense opportunities in expanding their entire business

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process beyond going the market of UK. The service providers can enter in Asian pacific zone to
expand their business (Jackson, Schuler and Jiang 2014). As per the threats of Uber, some of the
contemporary competitors have given immense market threats. The most recognizable
competitors include Ola cabs, Taxify, Lyft, Waymo and so on. The market craze of Taxify in the
current business scenario is high in UK domain. As a result, uber has to receive immense threats
from its competitors.
Advantages and disadvantages of SWOT analysis:
Advantages:
 It helps the organization in identifying their strengths and weaknesses
 The organization can understand which strategies they should follow by making SWOT
analysis
Disadvantages:
 SWOT analysis is very much restricted within internal analysis. It can only identify
organizational strengths and weakness, which is considered under subjective analysis. On
the other hand, SWOT analysis cannot evaluate the market condition of the organization or
the industry.
 SWOT analysis is considered as one dimensional method with the help of which company can
evaluate internal analysis only.
After evaluating SWOT analysis and its various impacts it can be summarized that using
SWOT analysis the company can make effective business strategy and policy (Hill, Jones and
Schilling 2015). In comparison to other ride facilitators, Uber provides immense benefits by

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offering promo codes, gift vouchers and free ride facilities and so on. As per business
opportunity, the organization has immense opportunities in expanding their entire business
process beyond going UK market.
2.2 PESTEL analysis:
In quest of evaluating the environmental factors of a geographic location the business
experts, intend to analyze political, economic, socio-cultural, technological, environmental and
legal issue. Before running the entire process of business in the market, organization intends to
analyze its environmental factors (Schaltegger, Burritt and Petersen 2017). If the external
environmental factors are not very suitable for the organization, the business experts do not have
to face challenges in running their business. Sometimes, it is observed that government rules and
regulations are not very much effective in helping the business experts in maintaining their
organizational wings successfully. On the other hand, it has also been noticed that political set up
is not well structured to grab the attention of customers (Beske, Land and Seuring 2014). In this
kind of situation, the business experts face difficulties to run their business and maintain
organizational image and reputation. The primary purpose of conducting environmental analysis
is to evaluate the political economic and environmental flexibility of the country based on which
business sustainability is highly dependent (Paillé et al. 2014).
Application for the company:
Political  UK was possessed with politically stable country. After
the incident of Brexit the opinion of Britain and
European union has been divided. In this situation, the
country had to face immense political turmoil (Li and Liu

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2014). It was difficult for an established business
organization the set up their business in the market of
UK. Government rules and regulations were changing
very frequently. It was reflecting on the overall process of
business. However, as per current market scenario, the
political set of UK market is stable than earlier (Engert,
Rauter and Baumgartner 2016). The people do not have
to face challenges in receiving the services from business
experts.
Economic  The economic structure of UK is strong based on which the
business experts of Uber can follow high pricing strategy. In
addition, employability opportunity of UK is high in market
due to the establishment of immense multi-national
companies. Therefore, Uber would have to follow strong
employability structure so that skillful and competent
employees tend to show their interest in being associated
with this business organization.
Socio-cultural  UK is possessed with the people of various cultural
backgrounds and attitudes. Therefore, the business experts
have to render diversity in their products and services.
Business experts and service providers are well accustomed
in communicating with the people of different religious
backgrounds and attitudes (Lewis, Walls and Dowell 2014).

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However, product diversification is one of the most
significant ways of expanding business in the market of
multi-national countries.
Technological  UK is out an out technologically developed country where
the inhabitants are well accustomed in operating advanced
technology. Thus, Uber has used online application service
method with the help of which customers can access the cab
facility by standing their own workplace (Hubbard, Rice and
Galvin 2014). Within few minutes, the cab arrives and the
customers can use the services.
Environmental  UK is overpopulated island nation where eco-system is less
due to degraded soils. In such an over populated nation UK
government strictly follow environmental laws and acts to
maintain ecological balance (Cornelissen and Werner 2014).
While running the entire business process for Uber, the
business experts would have to focus on maintaining
environmental laws and regulations.
Legal  UK government regulations and acts are very strict. With the
help of employability act the labors associated with the
organization have to focus on following data protection act,
anti-discrimination act, gender equality act, health and safety
act and so on.

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Advantages and disadvantages of PESTEL framework:
Advantages:
 It can give an in-depth overview about the environmental scenario of a country. Based on
that, the company can get the opportunity to form their market strategy and policy.
 This framework can reduce the potential impact to the organization
Disadvantages:
 This particular framework is very much limited within external analysis of a country. The
company cannot evaluate their strengths and necessities by analyzing PESTEL analysis
 This particular analysis is very much long-term and time consuming. As a result, business
experts have to give additional effort for analyzing PESTEL factors
After evaluating the entire PESTEL factors, it can be summarized that political set up is
not well structured to grab the attention of customers. Government rules and regulations were
changing very frequently. It was reflecting on the overall process of business. The economic
structure of UK is strong based on which the business experts of Uber can follow high pricing
strategy (Keith 2017). The business experts have to render diversity in their products and
services. UK is possessed with the people of various cultural backgrounds and attitudes. UK is
out an out technologically developed country where the inhabitants are well accustomed in
operating advanced technology. While running the entire business process for Uber, the business
experts would have to focus on maintaining environmental laws and regulations. UK government
regulations and acts are very strict (Meredith et al. 2016). With the help of employability act, the
labors associated with the organization have to focus on following appropriate acts and
regulations.

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2.3 Porter’s five-force analysis:
Porter’s five-force analysis actually evaluates the industry’s competitive factors. Apart
from Uber there are large number of transport service providers already existed in the market of
UK. Porter’s five-force analysis enables the customers in identifying the market power of the
buyers and the suppliers. Based on the bargaining power of buyers as well as suppliers the
organization would be able to deal with the customers and make their own strategies in
accordingly (March, Nguyen and Piro 2015). Competitors’ market analysis helps the
organization in getting in-depth point of views on how they should proceed for gaining
competitors’ advantages.
Application for the company
 Power of the suppliers’:
The power of the suppliers’ in the field of transport system is low due to large numbers of
distributors existing in the market of UK. The organizations belonging to transport industry can
get innumerable options to purchase their raw materials due to immense number of distributors.
 Buyer’s power:
Buyers’ power in transport industry of UK is high as they have ample options of using
services. Apart from Uber, large number of cab facilitators is there who can constantly provide
effective services (Ribeiro et al. 2014). Therefore, the purchasers do not have to wait on the
service of Uber only. Therefore, they can easily consider this service as an option.
 Threat from the substitute:

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Apart from private cab facilities, large number of taxi service providers also establishes
their business wings for making the transportation system systematic and flexible (Li et al.
2015). Therefore, Uber has to receive immense threats from those taxi service providers.
 Threat from the competitors:
As already mentioned, Ola cabs, Taxify, Lyft, Waymo are the major competitors of Uber.
The business experts have to receive constant market threats from its competitors in terms of
customer services as well as quality of products (Russo et al. 2014). In order to gain competitors
market advantages the organization such as Uber would have to put innovative strategies to grab
the attention of customers.
 New market entry threats:
Uber is headquartered in California and the business experts after entering in the market
of UK had to face immense challenges in gaining the attention of customers amidst innumerable
established cab facilitators.
Advantages and disadvantages of Porter’s five forces:
Advantages:
Porters’ five forces analysis are effective enough in evaluating the current competitors’
market and their threats (Callao 2014). The necessary competitors’ strategies can also be
evaluated while analyzing Porter’s five forces.
Disadvantages:

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The business issues within the existing companies cannot be identified and evaluated in
Porter’s five forces. In addition, the company cannot calculate their profit margin strategies and
policies by using Porter’s five forces.
After evaluating entire analysis on Porter’s five forces it can be summarized that the
customers can identify the market power of the buyers and the suppliers. The organizations
belonging to transport industry can get innumerable options to purchase their raw materials due
to immense number of distributors (Faizal et al. 2015). Apart from private cab facilities, large
number of taxi service providers also establishes their business wings for making the
transportation system systematic and flexible. The business experts have to receive constant
market threats from its competitors in terms of customer services as well as quality of products.
2.4 BCG growth matrix:
After reviewing the portfolio of the products and necessary scopes, opportunities and
market growth BCG matrix helps to evaluate long-term strategic planning of the company based
on which the organization would be able to gain good market position (Forouzanfar et al. 2016).
BCG matrix while making the market growth evaluation is constituted with four major stages
including dogs, questions marks, stars, cash flow.
Application for the company
 Dogs:
This particular phase signifies that the company and its product is constituted with low
growth of market share. In this very situation, the organization has to struggle in gaining their
market image and reputation.

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 Questions marks:
Question market is the phase of high growth of products in the market with low market
share (Chang 2016). In this phase, the business organizations have enough opportunities in
enhancing their rate of market share.
 Star:
Star is the phase of high market growth along with high market share. The business
organization in this phase has already established their market demand. On the other hand, in this
market growth stage organization has to face immense threats in maintaining their business glory
and reputation. However, this particular stage is very much effective as well as significant in the
entire journey of business.
 Cash cow:
This particular phase implies that products are in high market share in low growth of
market (Serra and Kunc 2015). In this kind of decline phase, products lose its market demand
and needs. In this particular phase, organization has to implement new business strategy for
gaining their business identity and image.
After discussing four major stages of BCG matrix it can be stated that Uber in current
business scenario is holding the position of stars with high market growth and high market share.
Advantages and disadvantages of BCG Matrix strategy:
Advantages:

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With the help of BCG matrix strategy, the company can understand the current market
growth structure at the business scenario. In this kind of situation, it has been observed that Uber
has achieved international glory and reputation.
Disadvantages:
BCG matrix is only capable in evaluating the market share and its growth. Organization
has to face immense challenges in getting internal strength and weakness (Kumar and Reinartz
2018). As a result, only BCG matrix is not effective enough in getting detailed overview about
organizational structure and market threats.
After evaluating the entire BCG matrix it can be summarized that BCG matrix helps to
evaluate long-term strategic planning of the company based on which the organization would be
able to gain good market position. The business organization in this phase has already
established their market demand. In this particular phase, organization has to implement new
business strategy for gaining their business identity and image. With the help of BCG matrix
strategy, the company can understand the current market growth structure at the business
scenario (Obeidat, Al-Dmour and Tarhini 2015). Only BCG matrix is not effective enough in
getting detailed overview about organizational structure and market threats.
2.5 Bench marking:
Benchmarking is the process of measuring the performance of a company in terms of
product quality and service facility. Performance is measured and compared with another
business, which seems to be the best in current market. After making an effective benchmarking
method the company can understand the way of internal improvements of their products and
services (Galliers and Leidner 2014). After going through the process of benchmarking,

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employees can get immense benefits and facilities. It can clearly improve employee
understanding of cost structure as well as internal process. It helps in making more team bonding
as well as with key performance metrics.
Application for the company
With the help of Benchmarking, procedure Uber has made effective comparative analysis
about their products and services in respect to its contemporary competitors. Ola Cab has
seriously given a major market threat in the UK market (Schaltegger, Burritt and Petersen 2017).
While making a comparative analysis with Ola facility it is observed that the service procedure
that Uber follows towards customers is faster and systematic than that of a service of Ola. On the
other hand, it is also undeniable that Uber is least costly products than Ola and the employees
associated with Uber are more efficient and professional. From every perspective, be it product
and service using Uber services is more beneficial than other transport supports.
Advantages and disadvantages of Benchmarking:
Advantage:
Benchmarking is one of the most effective ways of measuring the performance of an
organization in comparison to other company. As a result, the employees can get in-depth
overview about their organizational objectives and goals (Ross 2016). On the other hand, it has
also been observed that benchmarking can enhance the company standard in the current market
trend.
Disadvantages:

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Benchmarking cannot address the company’s environmental analysis. As a result, the
organization has to face innumerable challenges in evaluating the external environmental barriers
happened at the workplace.
It can be thus summarized after making an effective benchmarking method that the
company can understand the way of internal improvements of their products and services. While
making a comparative analysis with Ola facility it is observed that the service procedure that
Uber follows towards customers is faster and systematic than that of a service of Ola. The
employees can get in-depth overview about their organizational objectives and goals (Doz 2017).
Organization has to face innumerable challenges in evaluating the external environmental
barriers happened at the workplace. Benchmarking is the process of measuring the performance
of a company in terms of product quality and service facility.
3. Suitable model for Uber and its justifications:
After discussing all necessary models, the business experts of Uber have decided to select
two proper business models for implementing within workplace. PESTEL and BCG matrix
analysis are the two selected models with the help of which Uber can maintain effective
environmental analysis (Hill, Jones and Schilling 2014). In order to enter in the market of UK
Uber had to critically analyze the environmental factors existing in UK. With the help of this
environmental analysis, the business experts can understand on how to make their service
strategy and policy at the workplace. PESTEL analysis can help the business experts in getting
detailed overview about the external market factors. The Uber can get detailed overview which
particular business strategy and policy they can follow in order to overcome the barrier. On the
other hand, Uber can select BCG matrix analysis as well. BCG matrix analysis can help the

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organizational experts in evaluating the marketing growth strategies and policies (Stead and
Stead 2014). Marketing growth strategy is very much effective in analyzing the future business
opportunities for Uber. Without predicting future market strategy and policy the company can
never forecast the future prosper.
4. Necessary changes and its implementation:
However, after evaluating different business strategies and policies it can be stated that
Uber should implement some changes within their business strategies and policies. It is however
undeniable that Uber service is very fast based on which the service providers can easily reach
the pickup destination. At the same time, it is also undeniable that the workforce strength of Uber
facilitator is very much limited. By recruiting sufficient number of employees within services,
the business experts can deliver services to the people at a time. The range of target audience
automatically increases. On the other hand, it has also been observed that the business experts
have not implemented marketing strategies and policies within the services. Providing superior
quality of products and services to the customers is not the only mission of the customers (Li and
Liu 2014). Along with providing effective services the customer service providers have to
maintain effective promotional strategies and policies. The primary purpose of maintaining
proper promotional strategy is to create brand awareness. In this kind of situation, the business
experts would have to focus on enhancing promotional budget. Promotional budget is very much
effective in introducing the brands and the services in the global market. Marketing campaign is
very much effective in attracting the attention of customers (Hubbard, Rice and Galvin 2014).
Uber should use social media platform in quest of introducing their brands and services. As a
result, people would not have to face challenges in getting in-depth overview about this brand
from various social media services.

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5. Recommendations:
It is thus evaluated that Providing superior quality of products and services to the
customers is not the only mission of the customers. Along with providing effective services, the
customer service providers have to maintain effective promotional strategies and policies. Based
on the drawbacks some of the major recommendations can be provided and the
recommendations are as follows:
 The business experts would have to make effective stakeholder analysis while running their
business process in the market of UK
 The business experts would have to render marketing strategies and policies in order to
promote the products in different geographical boundaries
 The business experts would have to focus on enhancing workforce strengths so that
employees an easily maintain a balance between the supply and demands.
 Service providers should not discriminate the customers as per cultural and religious
backgrounds. Every single customer should get equal priority and response from different
sources
 In order to handle technological pressure and services the employees would have to give
additional training for enhancing their technological skills and competency. At the same
time, the customer service providers would have to provide effective training and
development session on communication skill as well. Effective communication skill can
make good rapport with the customers.
 The customer service providers should be flexible in maintaining both verbal as well as non-
verbal communication. Non-verbal communication is very much effective for

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communication with those people who have language barrier. As a result, customers would
not hesitate in using the services of Uber.
6. Conclusion:
The study has provided in-depth overview about the importance implementing various
business models and frameworks in order to perform well towards achieving business goals.
Before making market entry in various geographical boundaries, the organization has to make
different situational, environmental and internal analysis by using appropriate framework. By
rendering those changes, the organization would be able to gain organizational glory and
reputation more widely in the international market. Therefore, the organization should identify
their weaknesses so that they can improve those areas and enhance the level of market
opportunity. In addition, divers associated with Uber cab are extremely professional and expert.
They know on how to communicate with the customers. The riders are safe and secured for the
service users. As per business opportunity, the organization has immense opportunities in
expanding their entire business process beyond going the market of UK. If the external
environmental factors are not very suitable for the organization, the business experts do not have
to face challenges in running their business. SWOT analysis is very much restricted within
internal analysis. It can only identify organizational strengths and weakness, which is considered
under subjective analysis. However, as per current market scenario, the political set of UK
market is stable than earlier. UK is possessed with the people of various cultural backgrounds
and attitudes. Therefore, the business experts have to render diversity in their products and
services. This particular analysis is very much long-term and time consuming. As a result,
business experts have to give additional effort for analyzing PESTEL factors

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Competitors’ market analysis helps the organization in getting in-depth point of views on
how they should proceed for gaining competitors’ advantages. In order to gain competitors
market advantages the organization such as Uber would have to put innovative strategies to grab
the attention of customers. Apart from private cab facilities, large number of taxi service
providers also establishes their business wings for making the transportation system systematic
and flexible. BCG matrix while making the market growth evaluation is constituted with four
major stages including dogs, questions marks, stars, cash flow. However, this particular stage is
very much effective as well as significant in the entire journey of business. The business
organization in this phase has already established their market demand. In this particular phase,
organization has to implement new business strategy for gaining their business identity and
image. After going through the process of different business models employees can get immense
benefits and facilities.

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