Corporate Strategy for Uber: External and Internal Analysis

Corporate Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
External analysis..........................................................................................................................3
Internal analysis...........................................................................................................................6
Evaluation..................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment is that place where in the business operates, the environment
contains certain set of factors that might positively or negatively impact the business
performance. The business needs to evaluate the most appropriate strategies and policies by
identifying the challenges and opportunities in order to rightly manage the organizational
objectives irrespective of any circumstances or uncertainties. In the context of Uber as the
chosen business organisation. Uber is an American multinational company which is operating in
the transportation industry. The company was founded in the year 2009 by Travis Kalanick and
Garrett Camp. The company is headquartered in California; US Uber operates in 69 countries
including UK. It is a public limited company delivering its services such as ride hailing, food
delivery, package delivery, couriers, fright transportation. Taking Uber as the chosen
organisation this report delivers external analysis for which pestle analysis and porter five forces
model is used to evaluate the threats and opportunities and industry attractiveness. The internal
analysis of Uber is to evaluate the strengths and weaknesses, lastly the report delivers strategies
that best suits the organizational objectives based on the evaluation of internal and external
business analysis (Adamides, 2015).
MAIN BODY
External analysis
Pestle analysis
It is a framework of different elements that helps to evaluate the impact of macro environment or
macro environmental factors on the business performance. Pestle analysis has six elements such
as political, economic, social, technological, legal and environmental factors. These are
discussed below in brief:
Political factors
Political factors have a very specific and crucial role for ethically running and operation of the
business. The government in UK implements legislations such as taxation, minimum wages et
cetera. If the government changes or modifies these business laws, it directly impacts favourably
or unfavourably different businesses such as if the tax rates are increased this might directly

impact the profitability margins of the businesses in the country (Basu, 2017). With the
implementation of BREXIT, it has impacted transportation industries in UK at a larger extent.
Transportation industries faced challenges such as restrictions over exports and imports,
increased prices of excise duties, increased rates of raw materials and so on. Thus, the increased
rates of transportation cost and restrictions over exports and imports has become a threat for
different transportation businesses. Moreover, political uncertainties and government instability
becomes a threat for businesses operating in UK that impacts the net profit as all the business
activities pertaining to exports imports, transportation and shipping is directly dependent and
operated as per the governmental measures.
Economic factors
Economic factors are those factors that are determined by the economy, conditions of a specific
country. With stable economic conditions in UK, that brings high employment cost, easy access
to different technologies and so on brings number of opportunities for transportation industries.
Moreover, the fluctuations in hyperinflation also lets to loss of profitability margin, other factors
such as unemployment rate and reduction in disposable income becomes a threat for businesses
in UK (Brewster, 2017).
Social factors
Social factors are determined by the living standard and the social lifestyle pattern of the people
in a specific country. With higher living standards and higher purchasing power of people living
in UK where a large number of people have high income earning capacity all these turns as an
opportunity for transportation industry in UK.
Technological factors
Technological factors directly impact the business performance, as technology helps in bringing
out efficiencies and productivity in organizational functioning. With high technological
advancement in UK. Where in UK is also known as the fourth technologically advanced country
in the world brings number of growth opportunities for transportation industry (Chen and et.al.,
2019).
Legal factors