Importance of Business Strategy in the Contemporary Environment

Unit 32

Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1 ................................................................................................................................................4
P1 Discuss frameworks and analyse impacts and influence of macro environment on given
enterprise .........................................................................................................................................4
M1 Examine macro environment to determine along with to inform strategic management
decisions...........................................................................................................................................6
TASK 2 ................................................................................................................................................7
P2 Critically examine internal environment & capabilities ...........................................................7
M2 Examine internal environment to evaluate strength and weaknesses of organisational
structure and skill-set.....................................................................................................................10
TASK 3...............................................................................................................................................10
P3 Critically Apply Porter's Five forces model to evaluate competitive force in Uber.................10
M3 Apply strategies to improve competitive edge and market position based on outcome.........12
TASK 4...............................................................................................................................................12
P4 Analyse theories, concept and models to execute strategic plan ............................................12
M4 Analyse strategic management plan which has strategic priorities.........................................14
D1 Interpretation of environmental and competitive data to form set of strategic directions.......14
CONCLUSION..................................................................................................................................15
REFERENCES...................................................................................................................................16
Books & Journal: ..........................................................................................................................16

INTRODUCTION
In business, it is essential to be well aware about business environment so that goals are
accomplished. Business strategy is defined as strategical actions and tactics that are used to access
competitive benefits and higher productivity (Akan, 2016). Main aim of this report is to understand
the importance of business strategy in the contemporary environment. Uber, an American
technological company headquartered in U.S. It is at located at global scale and has number of
subsidiaries such as Uber Eats, Postmates, Careem etc. It as founded by Travis Kalanick on March
2009. Uber has many competitors such as Lyft, Grab, Curb etc. This report comprises of macro
environment PESTEL Analysis, internal environment, VRIO and SWOT analysis, Porter Five Force
model and strategic planning.
TASK 1
P1 Discuss frameworks and analyse impacts and influence of macro environment on given
enterprise
Macro environment refers to how condition of micro economic influences performance of a
company. It includes external factors that impact on business performance and progress. So, in
context of UBER, they operates at global scale and are affected by macro environment at larger
level. So, PESTEL analysis has been discussed as follows-
PESTEL Analysis
It refers to framework which is used to do scanning of business environment with strategic
management. To conduct this model, wide range of information is needed and it is a time
consuming process. It comprises of several elements which are described as follows-

Political factors-
It refers to components which comprises of factors such as political stability, corruption,
government policy etc. It focuses on intensity up to which government interfere within a economy.
In relation of Uber, due to rising of their services the tax rates are becoming higher. Also, in South
Africa Uber is facing political issue like the government of country is seizing Uber car because
driver doesn't hold a taxi permit (Braun, 2019).
Advantages
 Main benefit of this factor is that Uber is taking effective decisions within every country
where they are facing political issue.
Limitations
 Drawback of this factor is that it leads to disrupting relations between government and Uber
which affects their productivity.
Economic factor
In this element it comprises factors such as inflation and deflation rate, disposable income
of consumers etc. In relation of Uber, they have been known for generation of employment within
economy. Also, company is providing taxi services at lower prices Ciasullo, 2017).
Advantages
Illustration 1: PESTEL Analysis
Source: https://blog.v-comply.com/pestel-organization-
success/