Unit 32: Business Strategy

Business Strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
P1 Relationship between macro environment and business strategies of company...............3
Task 2...............................................................................................................................................5
P2 Study of internal environmental factor so as to match them with capabilities of Uber....5
Task 3...............................................................................................................................................8
P3 Application of Porter's five forces model on Uber............................................................8
Porter's five forces model of Uber..........................................................................................9
Stakeholder analysis of Uber ........................................................................................................10
Task 4.............................................................................................................................................11
P4 Theories, concepts and models of strategic planning......................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Business strategy is explained as a blueprint of actions and activities that assist
management of a company to survive in highly competitive industry (Anwar and Hasnu, 2016)
. It is basically the most important component of the management of any company. This
component helps an organisation to reach desired goals and objectives. Under business strategy,
company is devising a combination of decisions and policies that management follows so as to
attain organisational goals and objectives. This report involves an in depth study of all strategies
those can be adopted by the chosen company, i.e., Uber so as to achieve a strong competitive
position in the market. Uber is a company operating in private sector and it is working in
transportation industry. It is registered in California in 2009. there are various services that are
offered by the company, namely, cab services, food delivery, package delivery, couriers, rental
vehicles and many more. This report involves analysis of external and internal environment
factors that are impacting the business operations. This report involves application of Porter's
five forces model, Generic strategies, Ansoff matrix and Bowman's model so as to attain
optimum level of strategic planning in Uber.
Task 1
P1 Relationship between macro environment and business strategies of company
Business strategy is a roadmap that is structured by the strategic planners of the company
keeping in view two main objective and they are careful planning and flexibility. This whole
process is carried down to achieve organisational goals and objectives. A company is operating
in a surrounding in which there are various components that are impacting the strategic planning
of the chosen company and that is Uber. To analyse the impact of external factors, company is
using the theory of PESTEL analysis, through which it can develop an overall understanding of
all external factors.
Political factors: This segment refers policies and actions of governmental authorities
that are not only impacting the economic conditions but also other important componenets of a
business organisation. To illustrate, tax policy, trade restrictions, tariffs, bureaucracy, etc. These
factors affects the business in both favourable and adverse ways (Baraibar‐Diez, Odriozola. and
Fernández Sánchez, 2017).
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. In case of Uber, the most prominent factor affecting the business is the problem that the
company is confronting due to unclear business concept of company for governments around the
globe. The business idea of the business is unclear for governmental authorities around the globe
and it poses serious threat for the company (Bayo-Moriones, Galdon-Sanchez and Martinez-de-
Morentin, 2020). This whole situation leads to serious impact on formulation of strategies by
management of company as now they have the responsibility to clear the picture of their business
idea to governmental authorities so that it can lead to improvised trust of governmental and also
increase in their trust value.
Economical factors: These are the factors that are mainly representing the economic
conditions of the country and the way it is impacting the company's operations. To illustrate,
exchange rate, employment rates, inflation rates, economic growth rates, level of personal
disposable income, etc. In case of Uber, the dynamic pricing model is one of the significant
economic factors affecting the company. In times of high demand in market, issue of fix price
has been overcome by this strategy as it means that prices can differ for the same route at the
same time. This policy has been accepted by both customers and drivers with welcoming hands
and has been proved to be very favourable for the company. Economic condition of the country
is also impacting the strategy formulation segment of the company. To illustrate, if level of
disposable income is low, than it may lead to the situation, where general public is adopting
public transport, rather than cab services. This is due to the reason that they are not able to afford
the prices of private cabs. Therefore, it becomes essential for the company to opt for a business
place, where, economic conditions are in strong position.
Social factors: These are the factors that characterizes the demographic features of the
society which includes elements like average age of the population, gender ratio, cultural aspects
and traditional value, etc. These all factors impact the society in huge manner. In case of the
chosen company, customers are well satisfied with the services of the company and through this
factor, company will able to generate high profits. Company is also focusing in meeting the most
important need of today's world and it is safety measures. Company is able to generate higher
revenues due to the reason that they are understanding the social need of customers. One of the
most prominent facility that company provides to its customers is that, they are providing the
capability of tracking the ride. Through this facility, customers feel more safe and protected.
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