Organizational Management: Business Analysis of Uber in the UK Market

This report provides a comprehensive analysis of Uber's organizational management strategies, utilizing various business analytical frameworks such as SWOT, PESTEL, Porter's Five Forces, and the BCG growth matrix. The study evaluates the suitability of these models for Uber's business establishment, particularly in the UK market. From the perspective of a CEO, the report identifies key areas for change and offers recommendations for improving organizational management processes. It highlights Uber's competitive advantages, such as promo codes and professional drivers, while also addressing weaknesses like limited workforce strength. The analysis considers the political, economic, socio-cultural, technological, environmental, and legal factors impacting Uber's operations in the UK, and emphasizes the importance of adapting to these external influences to maintain a strong market position. Desklib provides this solved assignment and many past papers for students.

Running head: ORGANIZATIONAL MANAGEMENT
Organizational Management
Name of the Student
Name of the University
Author’s Note

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Executive Summary
The study has provided detailed overview about the importance of using different business
analytical frameworks. Uber is chosen as the selected company with the help of which the study
has analyzed appropriate framework suitable for business establishment of Uber. By considering
in the position of the CEO, the study has suggested some of the most important areas of changes.
The study has provided some of its major recommendations as well in order to suggest the ways
of improvement on organizational managing process. In comparison to other ride facilitators,
Uber provides immense benefits by offering promo codes, gift vouchers and free ride facilities
and so on. In addition, drivers associated with Uber cab are extremely professional competent.

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Table of Contents
1. Introduction:................................................................................................................................2
2. Different models for company analysis:......................................................................................2
2.1 SWOT analysis:.........................................................................................................................2
2.2 PESTEL analysis:......................................................................................................................5
2.3 Porter’s five-force analysis:.......................................................................................................8
2.4 BCG growth matrix:................................................................................................................10
2.5 Bench marking:........................................................................................................................12
3. Suitable model for Uber and its justifications:..........................................................................14
4. Necessary changes and its implementation:..............................................................................15
5. Recommendations:....................................................................................................................16
6. Conclusion:................................................................................................................................17

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1. Introduction:
Uber technology Inc. is one of the most prestigious transportation network companies
occupying immense organizational glory all over the World. Headquartered in California this
particular organization has widely spread its international network in the market of UK as well
(uber.com 2018). Before making market entry in various geographical boundaries, the
organization has to make different situational, environmental and internal analysis by using
appropriate framework. In order to run the entire process of business in the market of UK the
business experts of Uber have made different environmental analysis in order to understand the
market condition of EURO zone as per current business scenario.
This particular study has provided in-depth knowledge and understanding about these
market as well as environmental frameworks. The study has selected one particular framework,
which seems to be the most suitable for the business analysis of Uber. By considering in the
position of the CEO, the study has suggested some of the most important areas of changes. By
rendering those changes, the organization would be able to gain organizational glory and
reputation more widely in the international market. The study has provided some of its major
recommendations as well in order to suggest the ways of improvement on organizational
managing process.
2. Different models for company analysis:
2.1 SWOT analysis:
SWOT analysis is one of the most effective ways of evaluating the strengths, weaknesses,
opportunities and threats of the organization. In order to survive in the market of UK this

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particular organization needs to evaluate its necessary strengths and weakness. Based on that
evaluation, the company can make effective business strategy and policy (Hill, Jones and
Schilling 2014). Based on the weaknesses, the competitors can get the opportunities in gaining
advantages. Therefore, the organization should identify their weaknesses so that they can
improve those areas and enhance the level of market opportunity.
Application for the company:
In case of evaluating the strengths of Uber, it is observed that the organization is
possessed with several strong aspects, which help the company in maintaining their business
sustainability in the market of UK. The service procedure of the company is very fast with the
help of which the customers do not have to wait for the long time in using its ride facilities
(Ginter, Duncan and Swayne 2018). In comparison to other ride facilitators, Uber provides
immense benefits by offering promo codes, gift vouchers and free ride facilities and so on. In
addition, divers associated with Uber cab are extremely professional and expert. They know on
how to communicate with the customers. The riders are safe and secured for the service users.
Therefore, the customers can rely on the service methods structured by the business experts of
Uber. One of the major weaknesses of this organization is limited workforce strength (Stead and
Stead 2014). As a result, the business experts cannot fulfill the demands of large number of
customers at a time.
Sometimes, the services become unavailable which fails to meet urgent requirement of
customers. In this kind of situation, customers tend to show their dissatisfaction level after being
unable to receive the services from the business experts (Elmes and Barry 2017). As per business
opportunity, the organization has immense opportunities in expanding their entire business

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process beyond going the market of UK. The service providers can enter in Asian pacific zone to
expand their business (Jackson, Schuler and Jiang 2014). As per the threats of Uber, some of the
contemporary competitors have given immense market threats. The most recognizable
competitors include Ola cabs, Taxify, Lyft, Waymo and so on. The market craze of Taxify in the
current business scenario is high in UK domain. As a result, uber has to receive immense threats
from its competitors.
Advantages and disadvantages of SWOT analysis:
Advantages:
 It helps the organization in identifying their strengths and weaknesses
 The organization can understand which strategies they should follow by making SWOT
analysis
Disadvantages:
 SWOT analysis is very much restricted within internal analysis. It can only identify
organizational strengths and weakness, which is considered under subjective analysis. On
the other hand, SWOT analysis cannot evaluate the market condition of the organization or
the industry.
 SWOT analysis is considered as one dimensional method with the help of which company can
evaluate internal analysis only.
After evaluating SWOT analysis and its various impacts it can be summarized that using
SWOT analysis the company can make effective business strategy and policy (Hill, Jones and
Schilling 2015). In comparison to other ride facilitators, Uber provides immense benefits by

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offering promo codes, gift vouchers and free ride facilities and so on. As per business
opportunity, the organization has immense opportunities in expanding their entire business
process beyond going UK market.
2.2 PESTEL analysis:
In quest of evaluating the environmental factors of a geographic location the business
experts, intend to analyze political, economic, socio-cultural, technological, environmental and
legal issue. Before running the entire process of business in the market, organization intends to
analyze its environmental factors (Schaltegger, Burritt and Petersen 2017). If the external
environmental factors are not very suitable for the organization, the business experts do not have
to face challenges in running their business. Sometimes, it is observed that government rules and
regulations are not very much effective in helping the business experts in maintaining their
organizational wings successfully. On the other hand, it has also been noticed that political set up
is not well structured to grab the attention of customers (Beske, Land and Seuring 2014). In this
kind of situation, the business experts face difficulties to run their business and maintain
organizational image and reputation. The primary purpose of conducting environmental analysis
is to evaluate the political economic and environmental flexibility of the country based on which
business sustainability is highly dependent (Paillé et al. 2014).
Application for the company:
Political  UK was possessed with politically stable country. After
the incident of Brexit the opinion of Britain and
European union has been divided. In this situation, the
country had to face immense political turmoil (Li and Liu

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2014). It was difficult for an established business
organization the set up their business in the market of
UK. Government rules and regulations were changing
very frequently. It was reflecting on the overall process of
business. However, as per current market scenario, the
political set of UK market is stable than earlier (Engert,
Rauter and Baumgartner 2016). The people do not have
to face challenges in receiving the services from business
experts.
Economic  The economic structure of UK is strong based on which the
business experts of Uber can follow high pricing strategy. In
addition, employability opportunity of UK is high in market
due to the establishment of immense multi-national
companies. Therefore, Uber would have to follow strong
employability structure so that skillful and competent
employees tend to show their interest in being associated
with this business organization.
Socio-cultural  UK is possessed with the people of various cultural
backgrounds and attitudes. Therefore, the business experts
have to render diversity in their products and services.
Business experts and service providers are well accustomed
in communicating with the people of different religious
backgrounds and attitudes (Lewis, Walls and Dowell 2014).

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However, product diversification is one of the most
significant ways of expanding business in the market of
multi-national countries.
Technological  UK is out an out technologically developed country where
the inhabitants are well accustomed in operating advanced
technology. Thus, Uber has used online application service
method with the help of which customers can access the cab
facility by standing their own workplace (Hubbard, Rice and
Galvin 2014). Within few minutes, the cab arrives and the
customers can use the services.
Environmental  UK is overpopulated island nation where eco-system is less
due to degraded soils. In such an over populated nation UK
government strictly follow environmental laws and acts to
maintain ecological balance (Cornelissen and Werner 2014).
While running the entire business process for Uber, the
business experts would have to focus on maintaining
environmental laws and regulations.
Legal  UK government regulations and acts are very strict. With the
help of employability act the labors associated with the
organization have to focus on following data protection act,
anti-discrimination act, gender equality act, health and safety
act and so on.

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Advantages and disadvantages of PESTEL framework:
Advantages:
 It can give an in-depth overview about the environmental scenario of a country. Based on
that, the company can get the opportunity to form their market strategy and policy.
 This framework can reduce the potential impact to the organization
Disadvantages:
 This particular framework is very much limited within external analysis of a country. The
company cannot evaluate their strengths and necessities by analyzing PESTEL analysis
 This particular analysis is very much long-term and time consuming. As a result, business
experts have to give additional effort for analyzing PESTEL factors
After evaluating the entire PESTEL factors, it can be summarized that political set up is
not well structured to grab the attention of customers. Government rules and regulations were
changing very frequently. It was reflecting on the overall process of business. The economic
structure of UK is strong based on which the business experts of Uber can follow high pricing
strategy (Keith 2017). The business experts have to render diversity in their products and
services. UK is possessed with the people of various cultural backgrounds and attitudes. UK is
out an out technologically developed country where the inhabitants are well accustomed in
operating advanced technology. While running the entire business process for Uber, the business
experts would have to focus on maintaining environmental laws and regulations. UK government
regulations and acts are very strict (Meredith et al. 2016). With the help of employability act, the
labors associated with the organization have to focus on following appropriate acts and
regulations.

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2.3 Porter’s five-force analysis:
Porter’s five-force analysis actually evaluates the industry’s competitive factors. Apart
from Uber there are large number of transport service providers already existed in the market of
UK. Porter’s five-force analysis enables the customers in identifying the market power of the
buyers and the suppliers. Based on the bargaining power of buyers as well as suppliers the
organization would be able to deal with the customers and make their own strategies in
accordingly (March, Nguyen and Piro 2015). Competitors’ market analysis helps the
organization in getting in-depth point of views on how they should proceed for gaining
competitors’ advantages.
Application for the company
 Power of the suppliers’:
The power of the suppliers’ in the field of transport system is low due to large numbers of
distributors existing in the market of UK. The organizations belonging to transport industry can
get innumerable options to purchase their raw materials due to immense number of distributors.
 Buyer’s power:
Buyers’ power in transport industry of UK is high as they have ample options of using
services. Apart from Uber, large number of cab facilitators is there who can constantly provide
effective services (Ribeiro et al. 2014). Therefore, the purchasers do not have to wait on the
service of Uber only. Therefore, they can easily consider this service as an option.
 Threat from the substitute:

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Apart from private cab facilities, large number of taxi service providers also establishes
their business wings for making the transportation system systematic and flexible (Li et al.
2015). Therefore, Uber has to receive immense threats from those taxi service providers.
 Threat from the competitors:
As already mentioned, Ola cabs, Taxify, Lyft, Waymo are the major competitors of Uber.
The business experts have to receive constant market threats from its competitors in terms of
customer services as well as quality of products (Russo et al. 2014). In order to gain competitors
market advantages the organization such as Uber would have to put innovative strategies to grab
the attention of customers.
 New market entry threats:
Uber is headquartered in California and the business experts after entering in the market
of UK had to face immense challenges in gaining the attention of customers amidst innumerable
established cab facilitators.
Advantages and disadvantages of Porter’s five forces:
Advantages:
Porters’ five forces analysis are effective enough in evaluating the current competitors’
market and their threats (Callao 2014). The necessary competitors’ strategies can also be
evaluated while analyzing Porter’s five forces.
Disadvantages: