Unit 32: Business Strategy

Unit 32: Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY .................................................................................................................................................3
Macro analysis -PESTLE...........................................................................................................................3
VRIO........................................................................................................................................................4
McKinsey 7's ..........................................................................................................................................5
Porter's five forces..................................................................................................................................6
Balance scorecard...................................................................................................................................7
Porter's generic model...........................................................................................................................7
Bowman's theory....................................................................................................................................8
Ansoff matrix..........................................................................................................................................8
Strategic plan .........................................................................................................................................9
CONCLUSION.............................................................................................................................................10

INTRODUCTION
`Business strategy can be defined as making plans for achieving goals and objectives. It
can be refer to as identifying factors that can affect a company's growth. Plans are made with the
objectives to use resources efficiently, give directions properly to the workers, utilize
opportunities, achieving targets of the company. Uber technology inc. is a public company which
was founded in 2009 by Greer Camp and Travis kalanice. It provides various products such as
mobile app, website and services like providing food delivery, package delivery, courier freight
transport, vehicle for hire (Bai, Cordeiro and Sarkis, 2020).
In the present report, macro analysis in which PESTLE is described and stakeholder
analysis is done. VRIO, bench marking, coat benefit and value chain analysis is discussed.
Further, porter's five forces ,generic model strategy, hybrid strategy, Bowman's theory, Ansoff
matrix is described. A strategic plan is prepared in which mission and objectives, how to control,
implement is described.
MAIN BODY
Macro analysis -PESTLE
It can be defined as the factors that helps company in determining about makret and
competitors strategy. It will help organization in making strategy that will help company in
accomplishing targets. The macro environment factors are risky and it is not controllable but
managers try to solve this problem. It is a framework that is used to determine factors and take
measures to make changes in plans for the smooth working of organization (Bentley-Goode,
Newton and Thompson, 2017).
Political factor - It can be defined as the factors in which rules and regulations are made
by the government. These factors are decided by government such as, tax policy, trade
restrictions, tariffs, bureaucracy, trade barriers, labor law, environmental law, political stability.
Government changes tax policies and trade barriers that can affect the organization. Uber
company is providing services to the customers (Cubas‐Díaz and Martinez Sedano, 2018). In
different countries the tax rate is different so companies face problems and they have to pay
taxes according to the rate. If company want to import or export goods or services then trade
barriers will affect working of the company.
Economic factor- These factors involves economic growth, exchange rates, inflation rate
and interest rates. These affect company as if inflation increase then interest rate will be
increased. When company want to take loan then they will get loan at high interest rate. In uber
company they hires drivers and get feedback from customers quickly so that improvements can
be made. If there will be inflation then rate of taxi will also be raised. Managers has to take
necessary steps so that they can make strategies according to that (Farrukh and et.al., 2020).

Social factor - It refers to cultural aspects and health conscious, growth rate, population
rate, age, career attitudes. Companies may make changes in policies and procedures according to
the need of customers. Uber organization provides app on smartphones so that consumers can
easily purchase product. The prices of taxis are or services provided by the company are good as
compare to other transportation services. Noways, customers want new and innovative products
at reasonable price,this helps company in increasing profit by attracting more customers. It helps
in building good image in the market and overall productivity of the company will also be
increased (Firoz Suleman, Rashidirad and Firoz Suleman, 2019).
Customers are the king of market and products should be made according to the choice and
demand of customers to satisfy them and increase sales of the organization. Daily trends or
fashions are changing and needs are also changing according to that, so companies has to make
new products to attract more people and cover a wide area of network.
Technological factor — It refers to factors related to technology like change in machines or new
product is manufactured by using modern techniques or tools. As competition is increasing day
by day so all the organization what to earn more profit and build good image in the market.
Managers are making plans that what new can be done in product to attract more people and
increase sales. Technological factors includes research and development, automation technology
incentive and rate of change in technology. This means that it is a risky factor as there may be
change in technology anytime and managers has to change accordingly to maintain its position in
the market. In Uber company they are doing hard work and try to make good product or deliver
good services to attract customers and increase their sales (Fraser, 2019).
Legal factor — In these factors such as, discrimination law, employment law, health and safety
law. All these laws help in satisfying employees because they feel that if any conflict arise then
there are laws by which a company can solve the problems. This factor affects Uber as it faces
criticisms and bans, organization uses technical laws, copyright laws, health and safety law. Thai
help company in achieving goals and objectives of the organization.
Environmental factor — this factors includes, weather, climate, and change in climate. These
are some factors that are uncontrollable and company has to suffer problem by this but managers
can make plans or strategies so that risk can be reduced.
Stakeholder analysis
Stakeholder analysis refers to process of assessing a system and potential changes that are
required so that targets can be achieved. In this company gives all the relevant information on the
site and then check that stakeholders that are interested. On the site uber company give all the
relevant information which is necessary for stakeholders and according to that they make
investments (Grabher and van Tuijl, 2020) .