Unit 32: Business Strategy

Unit 32: Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................1
M1 Critically analyse the macro environment to determine and inform strategic management
decisions.................................................................................................................................4
TASK 2............................................................................................................................................4
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................4
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.....................................................8
TASK 3............................................................................................................................................8
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation......................................................................................................8
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes.........................................................................................................................11
TASK 4..........................................................................................................................................12
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation........................................................................................................12
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..............................................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
Books and Journals...............................................................................................................16

INTRODUCTION
Business strategy can be describe as the plan that is consider by organisation to
enhancing organisational practices and attaining business goals. There are different factors of
business that could have negative and positive impact on business (Park and Mithas, 2020). It is
essential for organisation to analyse these factors in order to develop effective business
strategies. This is significant for providing guidance and direction to organisation as well as
successfully carry out business practices. This report is based on Uber company. This
organisation is dealing in transportation sector and it is providing its services in different
countries. Uber company was developed in year 2009 and founder of this organisation is Garrett
Camp and Travis Kalanick. Head office of Uber company is located in San Fransicso California.,
U.S. This report will include appropriate frameworks to analyse macro environment. In this
report internal environment and capabilities of business has been determined. It consist of
Porter's five force model for evaluation competitive forces. Apart from this range of theories and
concept has determined for strategic planning.
MAIN BODY
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
Mission of Uber – The mission of Uber company is to make transportation reliable and
providing high quality services to customers.
Vision of Uber – The vision of Uber organisation is to provide smarter transportation to
customers with fewer cars and greater access.
Objective of Uber – The objective of Uber company company is to become the worlds
largest transportation network in global market area.
Strategies is refer as the action plan which sis designed in order to achieve goals and
objectives of business (Yuan and et.al., 2020). Strategy play important role in achieving business
objectives as it will providing direction to successfully and effective conducting business
practices. Macro environment can be describe as the external surrounding of organisation which
will affect the performance and productivity of business. Strategic planning techniques includes
SWOT, PESTEL model, Balance scorecard and so on which provide complete guidance to
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performing business task. There are different frameworks that is significant for determining
external frameworks of Uber organisation.
Stakeholder analysis – This is the process of identifying and determining the people along with
their power and role with in organisation. It is essential for Uber company to analyse stakeholder
in order to take better decision for business (Suoniemi and et.al., 2020). Stakeholder analysis is
consider and power interest grid which is mention below -
 Keeping satisfied – It consist of people which have high power but low interest in
business operations. They arte the people who are having the power to change the system
for the organisation. As they are not highly involved in operation that are being done in
the company, but their decision making capacity in the company is high and they can
influence the working of the organisation. .For example government as it will affect the
decision taken by Uber company. Although the government might not have any interewst
in the working of Uber but they are having high power to influence the working of the
organisation. Like if they come up with some new law related to the company and to that
the coom pany have to abide.
 Manage closely – This includes individual with high power and high interest. They are
the one who are having the highest power in the company and they are also having
interest in the profitability of the company and for that they are willing to make the
decision that will help the company to make profits.. Owner of Uber company is consider
under this category. They are the who are having maximum stake in the company. They
are the high table and they are the one that will be making the decision for the
profitability of the company.
 Monitor – It includes stakeholder who have low power and low interest in business
operations. These are those stake holder who are having limited power with them to
influence the decision making of the company. They are also not interested in the
working of the company. For example media and NGOs which are associated with Uber
company. As they are not going to be affected with the working of the company and they
are also not having the enough power through which they can influence the decision
making of the company.
 Keep informed – This consist of the individuals who have high interest and low power
to take important business decisions. These are the stake holders who are having avery
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little power in the management of the company but their interest in the working is very
high. As they wasn't to know all the things that are affecting them or that are affecting
their share in the company.
Thus, it has been analysed that different stakeholder have different interest and power
with in organisation and it will lead to influence the business strategies and decision making
process.
PESTEL analysis – This is business tool which will help in determining external factor that will
have direct or indirect impact on business practices. This model will include - Political factor – Government of UK has developed different regulations and policies for
designation of the driver (Rahmawati and Rahadi, 2020). This will lead to affect internal
functioning and business operation of Uber. UK government has developed different
policies for organisation that is dealing in transportation sector which will influence
functioning of business. On the other hand, due to the changing political conditions of
US, the company is facing issues as its overall performance is declined at marketplace.
Moreover, it is important for the company to develop effective strategies in order deal
with the political situations in an effective manner. The government of UK is also
providing various industry with the subsidiary as they want the existing business to grow
and they want that through the growing of the business they are ultimately going to help
the in the economic growth of the nation. Economical factor - UK nation has one of the highest economic rates in all over the over
but due to COVID 19 it has affected economic system and GDP rates. This influence the
performance of Uber company. Due to COVID 19 economic rates have been decrease
that influence over customers capability to purchase products and services. In addition to
this, the company is facing many issues as people still not prefer cabs for travelling which
affect negatively on its sales and performance level. Due to the lower rates the the
company is facing the issues and they have to reduce the prices of their fares so that they
can stay in the market. Due to the poor economic condition also the people are not
having enough money for providing high fare, so they have to make sure that they are
charginbng reasonable fare from the clients. Social factor – Uber is considering diversity in its business operations. It has reasonable
fare and customer consider Uber as trustworthy services. This increases the chances of
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developing strong relationship with customers. Uber company staff is significant for
developing better relationship with customers and it will have direct impact on sales and
profitability of business. . The services that they provide to their customers are so good
that after delivering their service the clients will still be in touch with the organisation.
Uber is very active socially and all that they want is that they want to maintain good
relation with the their clients so that in the future the clients can recommend them to
different users. In addition to this, the company provide services at lower prices that
attract large number of people and leads to raise in profitability of company. Technological factor – This organisation has opportunities to increase penetration of
internet and smart phone user services to enhance the quality of services. For
enchanginbg the quality of their services Uber is using latest technology and through thei
they just want to provide with the best qualtiy of service that they can provide. Uber
company new and innovative technology is helpful for increasing performance and
potential of company. Along with this, the company has its own website where customer
can directly communicate to the service provider and resolve their issues as well. This
help company to enhance its customer base level in an effective manner. Environmental factor – Uber initiation of offering pool services is eco friendly and it
positively impact on environment. . Every company while they are doing their operation
have to keep in mind the environmental factors and for the same in Uk there are various
laws regarding the protection of the environmental factors. They also have to make sure
that the pollution emitted through them is limited to the instruction provided by bthe
government and that they don't harm the environment by any chance. This company is
considering the impact of its services on environment and focusing on protection. Uber
ensure to make use of carbon footprints in order to protect the environment in an
appropriate manner. This help company to raise its brand image at marketplace.
 Legal factor – This includes different laws and legislation such as changes in
employment regulation will lead to directly affect business activities. Modification in
employment legislation will have influence over productivity and profitability of
business. In Uk there are various type of regarding the protection of the employees and
the regarding the operation of the business .It is analysed that the higher authorities of
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