The State of Autonomous Transport

This document discusses the impact and influence of the macro environment on a given organization and its strategies in the context of autonomous transport. It also analyzes the internal environment and capabilities of the organization using appropriate frameworks. The document explores topics such as PESTLE analysis, stakeholder theory, Ansoff Matrix, and VRIO framework. Additionally, it provides insights into UBER's strategic plan.

THE STATE OF
AUTONOMOUS
TRANSPORT
1

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies...............................................................................3
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................8
Apply porter's five forces model to evaluate the competitive forced of by the given market
sector for an organisation.....................................................................................................11
Apply the range of models, theories and concepts to interpret and devise the strategic planning
for the given company..........................................................................................................13
Produce a strategic management plan which includes strategic priorities and objectives:. .16
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18
2

INTRODUCTION
Macro environment are those forces which emerges outside the walls of business but
reacts business internally. It is also known as external environmental factors upon which no firm
has control. The factors which comes under umbrella of macro environment are political,
economical, social, technological, legal and environmental also known as PESTLE analysis.
Another macro environment factor known as Stakeholders theory. Stakeholders are those who
are related in some manner to the company and contributes small or large for the success of firm.
It comprises of various people such as shareholders of the company, its customers, human
resource, suppliers, etc. There is another factor which reacts on business conditions that is
internal environment. This refers to the factors which emerges within the walls of organisation
and are controllable by management team (Akgüç and et.al, 2019). It includes various
frameworks for its analysis such as McKinsey's 7s model and VRIO framework. Which tells
company's internal performances. In the present report such macro environment and internal
environment are discussed along with a discussion of Ansoff Matrix, Company's SWOT
analysis, Porter's five forces model, Porter's Generic Strategy, Browman's Strategic Cycle, etc.
are studied in the report. Further UBER's strategic plan is also made in the report.
TASK
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies.
PESTLE ANALYSIS
Macro or external environment refers to forces and factors which creates an impact on
firm in a large context. Factors under this category emerges from outside the business but reacts
internally and externally both. It does not only impacts on single organisation but also on related
industry completely. Company does not own any kind of control over them, they have to adapt
changes and work according to that reaction (Baiev and et.al., 2019). Firms like or not, or either
is profitable for them or not, they have to modify their operations based on external forces.
External environment comprises of factors such as Political, Economical, Social, Technological,
Legal and Environmental which is commonly known as PESTLE analysis. The impact and
influence of macro environment on UBER is discussed below:
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 Political environment: This factor of external environment relates to the
governmental and political interruptions which are forced in a form of rules and
regulations on companies (Bele, Panigrahi and Srivastava, 2020). The factor
includes stability condition of political party, nation's taxation policy, certain
trade and fiscal policy, etc.
UBER being related to service industry had a negative impact on itself initially by not
abiding governmental rules such as maintenance of minimum wage for its drivers. This negative
impact has resulted on company's stability and leads to poor brand image of UBER.
 Economical environment: This factor is related to nation's wealth and condition.
It includes concern areas such as inflation, deflation, unemployment,
poverty,exchange and growth rate, etc. It depicts country's economic performance
and its impact on business firms (Demyanova and et.al., 2017).
The reaction of this factor on UBER has proved favourable for the company. UBER gave
rise to employment by appointing drivers who provides ride services to country people. This also
resulted in increasing purchasing power of individuals in economy which leads to economic
development. The economical environment has created an influence of expert and professional
drivers on UBER which helped company to have competent personal for its services.
 Social environment: The third factor in macro environment is social which is
concern about the society's people in relation to their acceptance of product and
services, their ethics and morals, culture, demographics, etc. Companies sales its
products and services into market which is an inseparable part of society so firm
has to adjust itself according to the forces of society (Feng and et.al., 2018).
The social environment has influenced UBER by acceptance of its services by society
people in respect of good quality services at low prices.
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 Technological environment: The factor of macro environment is concerned with
technological fluctuations and innovations in market (Centobelli, Cerchione and
Esposito, 2020). It can be in any form such as enhancement or debasement of
technology, need of bringing innovation, new technology, etc.
UBER always adopts newest technology in its operations and services which is provided
to the potential users who always praises company in terms of technological use.
 Legal environment: This force of external environment is related with some
lawful concepts such as legal rules and regulations, policies or laws, etc. The
factor comprises of laws such as labour law, business regulation law, health and
safety, etc.
UBER many times faced some legal constraints and lawsuits which affected company's
brand image and performance negatively. Organisation not abiding lawful activities are penalised
and so UBER was.
 Environmental factor: This macro environmental factor posses characteristics
such as less pollution, healthy and clean environment, exploitation of resources,
etc.
UBER by paying its concern adopts ozone-friendly services and green driving option.
This environmental factor has influenced company to provide more quality services to its
customers. UBER also uses less carbon release cars in its services.
STAKEHOLDER'S THEORY ANALYSIS
5
PESTLE Analysis

Stakeholders refers to all those persons who are either directly or indirectly associated
with the company. They are customers, top level management, suppliers, government,
shareholders, etc. who can be internal as well as from outside the business. Stakeholders analysis
talks about the interests, their satisfaction level, takes initiative, etc. off all related people.
Behaviour and attitude of stakeholders effects company's performance and position. A negative
or rude behaviour of stakeholders can create problem in better performance of organisation and
vice versa (Goslin and Kluka, 2020).
Stakeholders of UBER comprises of its shareholders, competitors, drivers, customers,
partners, company's internal employees, investors, etc. who plays a great influences on
profitability and success. In year 2015, UBER was experiencing unfavourable behaviour from its
stakeholders that is customers and drivers. Later on UBER has canned the main issue and
adopted such strategies which turned rude behaviour into healthy one (Uber, 2021)
Ansoff Matrix
Ansoff Matrix also known as grid of market or product expansion which is a tool applied
by companies in order to plan their growth. The matrix comprises of four schemes which varies
with each other. It supports organisation in its growth and also measures risks connected to it.
The strategies in Ansoff matrix are Product Development, Market Development, Market
Penetration and Diversification (Grünig and Morschett, 2017). These are discussed below in
context with UBER:
6
Company's Stakeholders

 Product Development: This involves some modification or development in company's
current offerings. This can also be done by bringing new product or service into existing
operating market (Hanna, 2019).
UBER applies this by offering international transportation technology and raising its
services regularly. UBER offers a special service named UBER BLACK to its customers which
provides luxury car of black colour to its users.
 Market Development: This involves development of market that is launching company's
current products and services into new market. This is a market expansion strategy which
is adopted by company when plans to enter into non-operative market (Hermina,
Roespinoedji and Mohd Saudi, 2020).
UBER implied market development strategy by launching its services geographically, or
across the globe. When UBER came into the market it only serves in San Francisco but company
further expanded its business into markets of India, China, Brazil, US, and Mexico.
 Market Penetration: This strategy involves selling of company's current offering into its
existing market. Firms do this either by reducing its product's prices or increasing its
distribution channel or advertisement in the market (Kang and Oh, 2020).
UBER has applied this concept into its business by using different techniques for
promotion of company's sales, and also by lowering down its ride prices as compared to its
rivalries.
7
Ansoff Matrix

 Diversification: This is the last strategy in matrix which says to launch new product into
new market where at present company is not operating its business. This strategy is
combined with a high level of risk because of new launching in new market (Kyvelou
and Ierapetritis, 2019).
UBER has implied the concept of diversification by stepping its foot into food industry,
by offering food delivery services to the customers.
Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.
INTERNAL ENVIRONMENT ANALYSIS:
Internal environment also called as Micro Environment which effects business at a small
level or effects only company's internal operations. The factors of internal environment emerges
within the walls of organisation which are also controllable by management that can be ignored
by company if wishes to do (Lin and et.al., 2020). By this analysis company analysis its potential
and its weaknesses. Internal environment comprises of various frameworks such as VRIO model,
McKinsey's 7s model and Resource-based Strategy. Each model in context of UBER is discussed
below:
VRIO FRAMEWORK:
VRIO is a framework which is used by companies for the analysis of its resources and
helps in measuring firm's competitive advantage. The framework stands for Valuable, Rare,
Imitable and Organization (Pikor, 2018).
 Valuable: This includes value associated with company's product and services which is
offered to customers or associated with firms resources (Viola and et. al., 2020).
 Rare: This includes how often company's resources are rare in nature or can be easily
available with competitor.
 Imitable: This talks about the cost involved in copying company's resources by
competitors or how frequently rival firms can have resources like of your company
(Zhou and Wen, 2020).
 Organization: This says how well much company's resources are organized and how
effective they are.
The model in context of UBER is mentioned below:
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RESOURCES VALUABLE RARE IMITABLE ORGANIZE COMPETITIVE
ADVANTAGE
Innovation √ x √ √ Temporary Competitive
advantage
High Customer
Rating
√ √ √ √ Sustainable Competitive
advantage
Service Quality √ X √ √ Competitive Parity
Brand
Awareness
√ √ X √ Sustainable competitive
advantage
Financial
condition
√ √ X √ Sustainable Competitive
advantage
UBER's VRIO analysis, 2021
From the VRIO table of UBER it is analysed that:
 Valuable: For UBER all of its resources such as Innovation, Customer rating, quality,
brand awareness, financial conditions, etc. are very much valuable and respectable. These
resources provides an competitive advantage to the firm.
 Rare: Customer rating, company's brand image and its financial conditions are very
much rare for UBER which could not be easily available for any company whereas
innovation and service quality can be easily available with any company. Resources
which are rare for the company provides sustainable competitive advantage.
 Imitable: All of the UBER's resources except company's brand image and financial
condition are imitable in nature.
 Organization: UBER very well organizes its resources in the company which are used
very effectively.
MCKINSEY'S 7'S MODEL
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McKinsey's 7s model includes seven elements which are used for internal analysis of
company. These are Strategy, System, Structure, Skills, Style, Shared Value and Staff (Rohmah
and Subriadi, 2020). The model in respect of UBER is discussed below:
 Strategy: This includes company's objectives and plans which every firm makes to earn
profit. UBER formulates its objectives in very planned manner regularly to gain
competitive advantage.
 System: This involves some activities and technological software which is followed by
employees in their task (Just, 2020). UBER in-builds technological software in its
workings which provides quality services to its users.
 Structure: It includes firms organizational structure and classification of departments.
Hierarchical structure of organisation is followed by UBER.
 Skills: This element involves abilities and potential of company's employees which they
uses in their working. UBER has well experienced riders or drivers having efficient skills
of driving cars.
 Shared Values: It comprises of company's vision, mission, objectives and values. UBER
posses its mission by offering transportation to the society and at cheaper rate.
 Staff: It includes company's workforce and employees. UBER's employees are well
committed for their organisation and gives their best.
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MCKINSEY'S 7'S MODEL

 Style: This includes culture of doing business, managing workings, leadership style, etc.
UBER uses Rambo style leadership in its organisation.
Apply porter's five forces model to evaluate the competitive forced of by the given market sector
for an organisation.
Porter's five forces is defined as the framework used for analysing the competitive
environment of the company. It consists of five forces which influences the profitability of the
organisation and the forces includes the power of competitive rivalry of company, potential
entrants in new market, customers, suppliers and the substitute product (Susilowati, Utomo and
Setiawanta, 2017). As UBER is a large company operating in transport industry, it is important
to to look on the external forces and how these act on the company UBER and also define its
competitiveness and position in market. The Porter's five forces in context to UBER is discussed
below- Industry rival- This is a strength of the competition in industry. It includes the number of
competitors in the market and the ability of competitor to undercut the company. As
UBER operates in number of countries and every country have different competitors. The
power of this force is high for UBER as there are number of competitors existing in the
market whose business model is similar to UBER. The competitor compete on alternate
aspects such as price, customer service, comfort, convenience and reliability so the
overall competition which UBER faces is very high.
 Threat of new entrant- The power of company is affected by force of the new entrant.
The less money and time it cost for the competitors to enter the market, the more is the
established company position is weakened (Markaryan and Datsun, 2020). In context to
UBER, the power of this force is high as the industry in which UBER operates does not
require much efforts and cost to build. Any person who wants to come up with same
business models needs its own car and get itself registered and then work for UBER.
Thus the threat of the new entrant is high for UBER.
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 Threat of substitute- This includes the similar product or the service which can be easily
used in place of the product or service of the company. In relation to UBER, the power of
this force is moderate as there are not only direct competitors of UBER with same
business model but also indirect competitors who have different business model like
public transport can be threat for the company. These other transport service may drive
the sales away from UBER so the power of this force is moderate on the business of
UBER. Bargaining power of customers- It involves the ability of the customers to drive the
prices. The power of this force in context to UBER is relatively high as UBER does not
have permanent customers unless and until they become loyal to company. There are
many options available for the buyers in this industry and the customers have upper hand
so they can shift easily from one service to the other. Also UBER have price sensitive
customers which leaves the organisation at a disadvantage as it has to compete on the
basis of the price. So the power of this force is high.
 Bargaining power of suppliers- It address how the suppliers can easily drive their cost of
input. In relation to UBER, the power of this force is also high as the company UBER
does have the any vehicle which operates in its own name so it is dependent on its
suppliers who are the drivers. The suppliers have high bargaining power as the
organisation UBER outsources its car and service of driver which gives upper hand on
the UBER and if anything negative happens, then it will directly affect the goodwill of
the company.
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Porter's Five Force Model

So after analysing the competitiveness of the company and its position in the market, it
can be said that UBER have better position in the market to become a leader but it has to survive
the current competitive environment of business ion order to take edge over the competitors as
well as the suppliers and the customers.
Apply the range of models, theories and concepts to interpret and devise the strategic planning
for the given company.
PORTER'S GENERIC STRATEGIES
The generic strategies are the three alternative methods which can be used by the
companies to position itself within the industry competitively. It involves making decisions by
considering the scope of market and economic basis for the competitive advantage (Vashko and
et.al., 2020). In context to UBER, the three strategies which may be used by UBER to take the
competitive advantage in the market are discussed below- Cost leadership- This strategy pertains to the ability of the company to create the
economies of scale. In this, the company sets out to become the producer of low cost in
the industry in which it operates (Zhuang and et.al., 2019). The cost advantage sources
are dependent and varied according to the industry. In context to UBER, through this
strategy UBER can target the price sensitive customers. The company may give offers to
the customers together with good customer service so that a trust is build and the
customers shall recommend the service of UBER to other people also. This help the
company to drive its sale up ad high profits can be earned by it. Differentiation- It refers to the ability of the company to create the good which is
difficult to replicate and which can fulfil the needs as well. Under this strategy, a
company seeks to be a unique one in its industry which have some dimensions which are
valued by the customers. Through this strategy, UBER can come up with unique and
innovative idea to offer its customers so that it can differentiate itself from its
competitors. With the help of this strategy, UBER can attract the customers and enhance
its sales.
 Focus- This strategy rests on choice of the narrow competitive scope in an industry. The
focuser have to select the group of segment or the segment in an industry and then tailor
the strategy in order to serve them by excluding others. It has two aspects, one is cost
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focus and the other is differentiation focus. In the former, UBER shall be required to
offer its service at low cost so that more customers are attracted to avail it and in the later,
UBER can offer modern service so that customers can avail it without being the price
sensitive.
BOWMAN'S STRATEGIC CLOCK
It is a model that helps the companies in exploring the appropriate strategic positioning,
that is the way in which the companies can position its product or service so that it can take a
competitive edge over the other in a proper manner. The aspects of this framework is discussed
below-
 Low price, low value added- In this, the product or service is not differentiated and
customers perceive a little value despite the price which is offered is low.
 Low price- A strategy of the cost minimisation is necessary to make it successful. The
profit margin is low of products but the high volume of product generates high profit
overall.
 Hybrid- It involves the element of low cost but product differentiation is also present. It
is a combination of above two strategies.
 Differentiation- The main aim of this strategy is to offer the customers with the high
level of perceived added value. The key role in this strategy is branding.
 Focused differentiation- This strategy is aimed to position the product at highest price
where the customer purchase the [product because it has high perceived value. It is
14
Porter's Generic Strategy

mainly adopted by luxury brands to achieve premium price by targetting high
segmentation.
 Risky high margin- In this, the company sets up the high price without offering any
extra in terms of perceived value.
 Monopoly pricing- In this, there is only one business which offers the product to the
customer and the monopolistic have no need to be concerned about the value of the
product as the customers have no choice to purchase it from others.
 Loss of market share- This strategy is the recipe for the disaster in the competitive
market. The organisation sets the standard price of the middle range for the service or
product.
In context to UBER, the company can use differentiation strategy where a new and a
unique service shall be offered to the customers in order to attain high profits and generate high
revenues. With the help of differentiation strategy, innovative service can be offered in the
market so that the consumer interest is increased which will allow the sales to be increased and
the market share of UBER will also enhance.
Produce a strategic management plan which includes strategic priorities and objectives:
Strategic planning is a concept which shows all the activities and its process to the
management team which they follows in order to complete task. The strategic plan in respect of
UBER is mentioned below:
Vision: Company has a vision of offering cheaper rides to all its customers at every time.
15
Bowman's Strategic Clock

Mission: UBER has a mission of becoming industry leader with its cheap and easy availability
of transportation services.
Objectives: The main objective of UBER is to:
 offer ride services to customers at every place every time so to attain high competitive
advantage in industry.
 Company has an objective of increasing its services approximately by 20% within a
quarter.
 UBER wants to expand its business in non operating countries.
Tactics: Tactics refers to those short term work that a company does in order to attain its set
target. UBER applies its tactics such as promotion or adoption of such software's in a way that it
directly connects customers with its drivers to have high demand of its transportation services.
Certain marketing mix is taken into consideration by UBER to have better market.
Product UBER deals in providing transportation services to customers by providing
car, bike and auto services.
Price UBER charges its price based upon the vehicle selected by customer and the
kilometre for such ride.
Place UBER offers its services through its mobile application that can be installed
in any android or Apple store phone in order to have more and more
customers.
Promotion Company promotes it s services through digital ads as well as hoardings so
can get attraction from more customers.
Implementation:
UBER is required to implement the strategies in a way that brings better and profitable
output for the firm. The allocation of funds are done in such order that gives high level of
productivity along with less wastage of resources and time. UBER should produce a budget that
includes all the necessary expenses that a company needs to meet in order to achieve its goal.
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Evaluation:
It includes gathering of information and measuring the performances. This takes a follow
up for the plan and its performance so to have tract record of its corrective actions. With the help
of marketing plan company is able to tally its actual and targeted results and know its further
process.
CONCLUSION
From the above report it can be said that macro(external) and micro(internal)
environment are very crucial for company and effects business very much. Organisation needs to
be very careful and should scan the environment regular in order to lower down its effect on
company's performance. PESTLE and Stakeholders analysis are best for analysing external
environment whereas Ansoff and McKinsey's 7s model is very helpful for internal analysis.
Company should analyse its competitive market which can be done by doing Porter's five force
analysis. Making strategic plan is very important for organisations to work effectively and
efficiently. Firms can make its plan with the help of Porter's generic strategies and Bowman's
strategic clock.
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Online
Uber, 2021 [Online] Available Through <https://www.uber.com/in/en/>
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