Impact and Influence of Macro Environment on Uber's Business Strategies

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Impact and influence of macro environment on Uber and its business strategies..................3
P2 Analysis of internal environment and capabilities of Uber....................................................6
LO3................................................................................................................................................10
P3 Porter's five force .................................................................................................................10
Balanced scorecard ...................................................................................................................11
LO 4...............................................................................................................................................13
P4 Theories, concept that devise strategic planning of Uber ....................................................13
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy can be explained as the collection of all the decisions taken by the
company and the actions performed by the employees of the organization to accomplish business
goals and to sustain a competitive position in front of their competitors within the market space.
it is the major aspect for the company as it provides direction or path to the employees which
leads towards the desired and pre-defined goals. Any kind of mistake while creating business
strategies leads towards the loss and the organization might lost their ways in the crowd of their
competitors (Yuan, Tian, 2020).
Uber is an American technology company including services like ride hailing, food
delivery, package delivery, couriers and freight transportation services. The company is based in
San Francisco and operations in over 900 metropolitan areas worldwide. It is one of the largest
firm in the gig economy.
This report will contain information related to business strategy, impacts and influence of
macro and micro environment and internal environment analysis of the company. Along with
these informations this study will also highlight various theories, concepts and models of
strategic planning of Uber.
MAIN BODY
P1 Impact and influence of macro environment on Uber and its business strategies
PESTEL Analysis
There are various internal and external units which influences the operations of the
organization. The Uber assures to maintain a balance among these forces shows the
organizational ability to maintain a successful relationship between customers and company.
Uber always pays great attention towards adapting environmental changes which affects whole
business activities (Yuliansyah, Mohamed, 2017). There are 5 major forces which impact the
macro or external environment of Uber: Political Factors: Uber has faced endless controversies at the time of its initial
development because of their unclear regulations. One major issue is that it was difficult
to pinpoint insurance facilities at the time of accidents. Another issue is that Uber has
faced additional critical examination worldwide. Netherland create charges on the drivers
of Uber that they are not having taxi licences and results in cease orders from Poland

which additionally consider as ban in Asian countries. The commercial licences are also
required by the government which forces the Uber to provide that documentation to the
government in operated countries. Economic Factors: The Uber operates in sharing economy i.e. the economy which is
based on sharing physical and intelligence resources. In such case, Uber hires drivers
which gives positive response to their consumers and drive them to the location. It has
been stated as cheaper than taxis and also easy to schedule the rides. The company grows
drastically since its initial launched in the market space but countries banned its services
because it arises unfair competition against regular taxis. The company is able to provide
better career opportunities to the candidates but along with the limitations of income
(Dalirazar, Sabzi, 2020). Social Factors: Customers of Uber enjoys the easy to access and booking rides
experiences through their platform. The services require no communication rather than
just pick the location and type of vehicle in order to book the rides. Customers of Uber
share their joyful experiences on the social media sites spread the awareness of services
among market at a very fast pace. But with the rises in popularity the prices in some cities
rose too. With the ease in availability of services provided by Uber, people uses its
services rather than taxis or public transportation. Technological Factors: Uber has become famous through social media platform as the
customers share their experiences and reviews on social media sites which encourages
other customers to use the services offered. Buyers are searching for cheaper
transportation facilities and Uber understands the demand and act accordingly. The
application is a necessary tool for the company and for this they haver to adopt the
advanced technology in order to meet their profit expectations. For this the company also
have the responsibility to ensure that everything is working and reliable for the
consumers because the business is totally dependent on the technology.
 Legal Factors: Uber faces a lot of criticism and attempted bans in different locations
worldwide. The company follows and must have to follow all technological usage rules
or regulations, copyright laws, consumer safety laws and employee safety laws as well.