Unit 32 (Business Strategy)

Unit 32 (Business Strategy)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Impact of macro environment on the organisation and its strategies.....................................3
LO 2.................................................................................................................................................7
P2 Internal environment and the capabilities of Uber.................................................................7
LO 3.................................................................................................................................................8
P3 Evaluation of the competitive forces of transportation industry for Uber..............................8
LO 4...............................................................................................................................................11
P4 Strategic planning through models, concepts and theories..................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy is basically considered as the outline of the actions and the decisions
which are planned by the company for reaching the goals and objectives of the business. These
focuses on the ways in which business can reach its goals and also it helps in guiding the
decision making process to hire the desired candidates and allocate the resources (Shtal and
et.al., 2018). This report will focus on business strategies of a very well-known company known
as Uber. The company deals in food delivery (Uber Eats) couriers, package delivery, freight
transportation, ride-hailing etc. Uber company is headquartered in California, US but performs
its operations in more than 70 countries across the world. The report will shed light on the
external and internal analysis of the company by analysing the influence of the internal
capabilities and the external environmental factors on the business strategies of the company.
Various models and theories will be use to analyse this impact. Porter’s model will be used to
evaluate the outcomes of the analysis. This will be followed by highlighting the strategic
planning for the organisation.
MAIN BODY
LO 1
P1 Impact of macro environment on the organisation and its strategies
Mission: The mission statement of Uber is “Transportation is as reliable as the running water,
everywhere for everyone”. This means that the company strives hard to treat the customers with
the memorable services of transportation.
Vision: The vision statement of the company is “We ignite the opportunities by setting the world
in motion”. This describes the level of the impact which the company has not only in the
transportation niche but also on the other various different life processes which directly or
indirectly depends on what the company does. This is why; the company tries to link the people
with other people as well as places by setting the world in motion. The vision statement of the
company is customer centric which means the most of the decisions of Uber are based on the
ways in which the customer receives them.
Objectives: The main objective of the company is providing a convenient, safe and inexpensive
taxi service. This helps the company in providing taxi service for everyone. The other objectives
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include providing job opportunities and dependable income for drivers which help in creating
brand loyalty and making the customers and the drivers satisfied.
The macro environment is considered as a dynamic factor which keeps changing
drastically. This affects the business and its strategies greatly as it leads to the increase in
competition, avenues and the complexity. The impact of the macro environment on the business
can be analysed by using various models such as Pestle, Porter’s 5 Force, Ansoff Matrix,
Stakeholder Analysis and many more (Tzur, 2019). Though, Uber is facing rapid success in the
transportation industry, the company is also facing various controversies related to the taxi
industry, banning in many countries, minimum wage complications etc. In order to analyse the
impact of these factors on the business and the business strategies of Uber, Pestle model can be
used.
Pestle analysis is basically a framework or a tool which is used for analysing and monitoring the
macro-environmental impacts on the company (Song, Sun and Jin, 2017).
Figure 1: PESTEL ANALYSIS OF UBER
Source: PESTEL analysis, 2021
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Political: Uber was known for its involvement in the political debates since many years. The
company is facing various types of regulations and political issues. The company is also facing
lawsuits and the also was ruled by the Californian authorities to treat its drivers as employees and
not as contractors (Kara, 2018). Also, the company is facing licensing issues which the why the
government started impounding the taxi drivers because of not holding the permits.
Economic: The Company has faced a higher growth because of its low price and great customer
service. Uber also provide various jobs to the people due to its sharing economy even in the
times of economic crisis. Due to the economic factors, the customers get attracted to the
company providing low cost services which helped the company to beat the competition.
Social: Uber managers its socially respectable and acceptable image. The customers are attracted
by the price and the quality of the customer service provided by the company which provided
them the experience of rising which was not available before. The company gained popularity in
the society which strengthens its social image (Ma and et.al., 2018). This helped the company to
stand as a tough competitor against the controversies regarding the laws, background check of
drivers, competition etc.
Technological: Uber believes to innovate itself by making use of advanced technologies. This
provided the great experiences and the smooth access to the riders and the drivers. The company
strives hard to add new and innovative features to its app and everything such as push
notifications; direction, geolocation etc. are integrated in the app.
Environmental: The environmental concerns are increasing day by day which force the
companies like Uber, Lyft etc. to adhere to the sustainability concerns regarding the rise sharing
services. The company also started a project named Uber Green which can help the customers to
get the experience of green rise.
Legal: The companies like Uber needs to comply with the laws made by the government of the
country in which it operates as if the company does not comply to the laws then it has pay
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greater fines. The company is facing various legal issues regarding the taxes. The company was
fined many times for illegal driving without permits.
Stakeholder’s Analysis
The stakeholders play a major role in the decision making and the performance of the company.
These are considered as the most important for the company as they are involved in every
process and operation of the company especially the decision-making process. These can be
internal as well as external. The internal stakeholders belong to the company and works in it
whereas the external stakeholders do not belong to the company but engage from outside the
company.
The internal stakeholders of Uber are owners, managers, employees, IT support staffs, drivers,
taxi operators etc. whereas the external stakeholders include competitors, customers, government
etc.
Figure 2: Stakeholder frameowork of Uber
Source: Uber Stakeholder Analysis, 2021
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