Analyzing the Impact of Macro Environment on Uber's Business Strategy

BUSINESS STRATEGY
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Table of Contents
Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply framework for analysing impact of macro environment and their strategies.............3
TASK 2............................................................................................................................................6
P2 Evaluate internal environment and capabilities through using appropriate framework........6
TASK 3............................................................................................................................................8
P3 Implement Porter's five forces through which competitive forces can be analysed..............8
TASK 4..........................................................................................................................................10
P4 Implement different theories, concepts and models and interpret strategic planning..........10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Environmental analysis is planned set of procedure through which a management can
analyse all internal and external environment which can directly or indirectly influence
operations of management (Abugre and Anlesinya, 2020). Through analysing business
environment, organisation can monitor opportunities through which business can be enhanced
and threats can be priorly observed which will help business in taking corrective measure for
maintain goodwill of organisation and earn maximum profit from their functions and activities.
Uber Technologies also known as Uber was introduced by Travis Kalanick and Garret Camp in
march 2009, San Francisco, California, UK. The company provides various services such as
vehicles for hiring, freight transportation, food and packaging delivery. There are several
subsidiaries of Uber through which business aims to provide valuable services to numerous
customers in different domains by using digital media platforms. This project report is based on
framework of Uber, their impact on macro environment, analysis of internal environment
capabilities, how competitive forces in market can influence business and various models and
theories through which strategic planning can be interpreted.
TASK 1
P1 Apply framework for analysing impact of macro environment and their strategies
Uber is a technological company which aims to provide various services of transportation
and delivery services through maintain a partnership agreements with rental scooter and bicycle
companies. The headquarters of company are based in San Francisco and they operate in 900
areas all around the world. The company use dynamic pricing strategies in which fares fluctuate
depending on local demand and supply. As we know Uber is a multinational company, various
macro environmental factors affect business functions which is analysed through using
marketing strategy such as PESTEL Analysis (Anwar and Hasnu, 2016).
PESTEL Analysis for analysing responsible macro environment factors
There are many factors which are responsible in affecting business environment and
which can influence operations and success of the business. All responsible factors are analysed
through using such marketing strategies which help business in analysing macro factors which
can directly or indirectly influence functions of management. Through using PESTEL analysis
various factors can be analysed which are political, economic, social,
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technological,environmental and legal factors. Through using PESTEL Analysis it helps in
analysing dynamics of market and enhance business. The influence of these factors on macro
environment of Uber is analysed and is explained below:
 Political Factors: These factors are related to government policies, government
interventions in economy which can affect the functions of management. Some of
political factors which are responsible to affect business environment are taxation
policies, trade restrictions, trade tariffs and bureaucracy. Several political factors which
are implemented creates adverse impact on core business operations. Uber faced many
controversies all around the globe and through increasing problems, it affects the
operations of business which influence business at several stages (Baraibar‐Diez and
et.al, 2017). There are several political discussions and government laws which are
related with organisation and can affect management functions. Business licensing are
another political factors which is responsible in creating a impact on management
functions as such documents are required by government.
 Economical Factors: Economic factors are monitored and evaluated by Central banks
and government agencies. The different economic factors which can influence business
operations are economic growth rate, inflation, rate of unemployment, interest and
exchange All physical and intellectual resources utilized by Uber are based on sharing
economy as this economy generates more employment opportunities. The company
provides low budget taxi prices through which they can give high competition to other
rivalry companies. Uber have faced quick development through facing challenges using
strategic and constructive approaches and economic recession creates less impact on
organisation.
 Social Factors: Social factors are cultural and demographic trends of society which
creates an influence on business environment and affects management operations.
Various social norms such as health consciousness, cultural aspects, population growth
rate, career attitudes and age distribution (Bentley-Goode and et.al, 2019). Through
providing valuable services to their customers, Uber aim to meet customer satisfaction
and maintain their loyal customers. Through using various digital media platforms
business have made easier to connect with their customers and increase awareness and
provide quick assistance to their customers. Through promoting services with the help of
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