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

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Frameworks for analysis of impact and influence of Marco environment on organisation
and its strategies..........................................................................................................................1
TASK 2............................................................................................................................................3
P2 Analysis of internal environment and capabilities of organisation........................................3
TASK 3............................................................................................................................................5
P3 Application of Porter's five forces model to evaluate the competitive forces.......................5
TASK 4............................................................................................................................................7
P4 Application of theories, concepts and models, interpretation of strategic plans of
organisation.................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy can be defined as the activities and decisions which are taken by
company to reach its business goals and take competitive advantages in the industry it is
operating. The strategies define what are the activities which will help to reach goal, what can be
guidelines to take decisions of hiring process and allocation of resources (Chen, Eshleman and
Soileau, 2017). The company selected for this report is Uber Technologies, Inc., which is
commonly known as Uber, it offers vehicles for hire, food delivery that is Uber Eats, couriers,
package delivery. It has been estimated that Uber has over 110 million active users monthly that
too worldwide. The report covers analysis of impact and influence of macro environment and its
businesses strategies, analysis of internal environment and capabilities of enterprise. Apart from
this report focuses on evaluation and application of outcomes in given market sector and a range
of theories and concepts which can devise strategic plans of organisation.
TASK 1
P1 Frameworks for analysis of impact and influence of Marco environment on organisation and
its strategies.
Uber Technologies, Inc. is a company which is based in San Francisco and has operates
of transportation services in over 900 metropolitan areas worldwide. It is one of the biggest
providers in gig economy and a pioneer in development of self-driving cars. Macro environment
includes factors which are external to the working of enterprise (Cagnin, 2018). The following
are two analyses which have been used by Junior Strategy Manager of company to analyse the
macro environment of company.
The first analytical tool used by junior strategy manger is Pestle Analysis. This tool is
used by the manger to analysis and supervise macro environmental factors which impacts on the
company (Irawanto, 2017). The result of this analysis helps in identifying threats and weaknesses
of enterprise.
The factors are discussed as follows:
Political factors- In UK it has been seen that constitutional monarchy is there which is
being ruined under the influence of a parliamentary system. UK is one of the most stable
countries with plenty of resources and opportunities for the companies which have being
operating there. The junior strategy manager has seen positive impact of political factor as there
1

us political stability and government is also proactive and the administrations are also split into
national and authorises. This has helped the entity to expand in different countries also. It is
influencing the strategy of Uber as the enterprise has to make changes in its strategy according to
the political policies.
Economic factors- UK has strong economic position as compared to other countries. It
has high GDP and diversified economy, but it also has few issues (Ansah and Sorooshian, 2017).
By operating in such an economy junior strategy manger has observed that despite large
population, small markets can avail profitable situation, company is running in diversified
economy were both large public and private sectors are influenced. It is affecting strategy of
Uber because the managers of the organisation are required to formulate all the strategies
according to the changes in the economic factors.
Social factors- These factors are deceptively important factors in pestle analysis. In UK
there is high social standard level which leads to better all-round circumstances for the company.
This impacts positively on the working of Uber as there is open migration which is leading to a
cosmopolitan environment which provides cheap working labour to company. The social factors
have helped the company earn high profits as the standard of living is high in UK by which the
demand of facilities by Uber have in demand by the customers. It is also leaving impacts upon
the strategies of the enterprise because the managers need to modify their strategies according to
taste, preferences and other social factors.
Technological factors- As Uber is technological company the innovative technological
up gradations has helped company to develop its functions effectively. Consumers use the
application for their appointments. For example, the consumer can excess the application and
then get an estimated ride cost before booking a ride (Pan, Lu and Lei, 2017). They can pay for
the ride through that app too. The impact of this factor is positive as the customer can be
attracted easily as their work is getting done through one click. The entity’s strategies are getting
impacted because of these elements because the managers are responsible to incorporate all the
new technologies in business to ignore lack of engagement of customers in business.
Legal factors- Legal compliances has been challenging for every business and even for
Uber. Junior strategy manger has seen that company has also been bounded with the laws as the
application of traditional services can be applied or not. It has faced problems to only related to
the taxes but with human resources also. There have been cases were legislations were that
2