Business Strategy Report: Analyzing Uber's Environment and Strategy

This report provides a comprehensive analysis of Uber's business strategy. It begins with an introduction to business strategy and an overview of Uber's operations, vision, mission, and objectives. The report then delves into the impact of the macro-environment on Uber, utilizing frameworks such as stakeholder analysis, PESTLE analysis, and Ansoff's matrix to assess political, economic, social, technological, legal, and environmental factors. The report further evaluates Uber's internal environment and strategic capabilities using the resource-based view and McKinsey's 7S model. Additionally, it applies Porter's Five Forces to analyze the competitive forces within Uber's market sector. Finally, the report examines different models, theories, and concepts related to strategic planning for the company, concluding with recommendations for future strategic development.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Analysis the impact of macro environment on organisation and its strategies......................3
TASK 2............................................................................................................................................7
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks..................................................................................................................................7
TASK 3............................................................................................................................................9
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm.
.....................................................................................................................................................9
TASK 4..........................................................................................................................................10
P4 Apply different models, theories and concepts to interpret strategic planning for a
company....................................................................................................................................10
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy refers to the process of framing the action plan in order to operate the
various functions of management in a systematic manner. It analyse how the business will
complete the specific task in the particular market with the specific products and services so that
they can establish a good brand image in the market(Zucchella and Previtali, 2019). It is
important to make the business strategy so that manger can taught their subordinates with their
roles and responsibilities so that they can perform therm in an approached manner with the
consideration of cacheing the organisational goal. Uber is the chosen organisation for this report,
It is the American technology company that is based in San Francisco and currently operating
across 900 metropolitan area in the world. It is dealing in food delivery, package delivery, offers
vehicle for hire and freight transportation. The company is founded by Garrett Camp in March
2009 and the headquarter of their company is in San Francisco, California. This report will cover
the impact and influence of macro and micro environment on the company and also analyse the
Poter's five force model in order to evaluate the competitive forces of a given market sector.
Moreover, It will determine the range of theories for the strategic planing in an organisation.
TASK 1
P1 Analysis the impact of macro environment on organisation and its strategies.
Business strategy is the set of several techniques and principles so that they can
implement them in their business in order to make the best use of them with the consideration of
achieving the good brand image in the marketplace(Westerman, 2018). In context of Uber, they
have planning the various business strategy so that they can run their business in an appropriate
manner with the consideration of attaining the desired goal.
Vision: The vision statement of the company is,'' To be the most trustworthy brand of cab
services that offers the safe ride.”
Mission: The mission statement of the company is, '' to grab the opportunities with the
help of moving all over world.”
Objectives: To build the strong relationship with the customers by offering quality
services and to become the market leader by which they can earn maximum profits so that they
can get the competitive advantage in the market.
Different strategic planning techniques

 Business analysis: It is the practices which help in acknowledge the strength and
weaknesses of the company and Uber can make the right decision by knowing the
loopholes in their business operations.
 Benchmarking: It is the practice of comparing the competitors in order to establish a
good brand image in the marketplace. Uber can compare their growth with the market
leader in order to establish a good brand image in the market.
Various analytical framework to acknowledge macro environment
Stakeholder analysis
An individual or the team involved in the organisational project that is called its
stakeholders. A stakeholder analysis is the process of identifying the people according to their
participation, interest and influencing in the specific project and evaluate how best they can be
involved in the communication related to the projects. In context of Uber, they are group the
candidate according to their interest and the influence in the project. Stakeholder can be
categorized into four categories that is describe below:
 High power, high interest: These are the most important stakeholders and you need to
keep them happy throughout the project. Uber ensure that they are satisfying their
stakeholders so that they can contribute in the achievement of the business goal.
 High power, low interest: They are the individuals which influence the operations of the
company but they are not having any interest in the business's project of the Uber.
 Low power, high interest: These are the type of stakeholders which needs to be
informed by the company so that they can not create problem in the operations of Uber.
 Low power, low interest: These are the type of stakeholders to whom, power is not
associated with them and they are not interest in the project of the company (Van Thuy,
2021). In context of Uber, they have to monitor such stakeholders so that they can not
create any dispute with in the organisation.
PESTLE Analysis
It is the framework of analysing the macro factors that is impacting the operations of the
business enterprises so that they can cope with the market situation in order to run their
operations. In context of Uber, PESTLE analysis is explained as follows:
 Political factors: These are the factors which includes the government policy,
corruption, foreign trade policy, tax policy, labour law and environmental law. Uber is

the American company and the government in the country is stable that opens the ample
of opportunities in order to run their business continuously in an appropriate manner. On
other hand, they are operating their tax services in several countries ans it is not possible
to follows the rules and regulation of each country in order to run their business.
 Economic factors:These are the factors which includes the economic growth rate,
exchange rate, inflation rate, disposable income of the consumer and interest rate (Tsalis
and Nikolaou, 2017). The economic condition of the country is very good so the Uber
have the less risk of uncertainty and they can run their operation successfully. On other
hand, there is a huge impact of COVID-19 due to which the taxi services is completely
shutdown for a period of time.
 Social factors: These are the factors which includes the age distribution, income
distribution, career growth, health and safety, population growth rate and life style of the
individuals. Customer can get book the car in easy approach, they don't have to wait too
much and can get the booking at every location so Uber is meeting the expectation of the
consumers. On other hand, In rural areas people are not aware about their services so that
it affects the reachability of their brand by their potential customers.
 Technological factors: These are the factors which includes the technology incentives,
research and development (R&D) activity, technological change and automation. It is
important for the company to adopt the innovation technique in order to sustain in the
competitive market by which they can get their predefined goals. On other hand, due to
implementation of innovative techniques company face the increase their production cost.
 Legal factors: These are the factors which includes political factors, employment law,
copyright and patent laws and trade restrictions. Uber is following all the traffic rules
with the consideration of operating their business in the lawful manner and ensure the
safety of the customers. On other hand, they are operating their business across the globe
and this makes difficult to follow the rules and regulation of each country in order to run
their business.
 Environmental factors: These are the factors which includes the ecological and
environmental aspect such a climate, weather, pollution and the scarcity of raw
material(Rivera and Clement, 2019). Uber is using cars, bike etc. that emits pollution and
effect the environment so company must use the eco-friendly vehicle in order to save the

environment but some how they are unable to follow the environmental law in full
considertaion.
Ansoff's matrix
Ansoff's growth matrix is the strategic tool that is used to frame the right strategy for the
growth of the business. In context of Uber, the steps are explained as follows:
 Product development: In this aspect, A company introduces a new product I the existing
market in order to meet the current trends of the marketplace. Uber can increase their sale
by offering the new product and can cover the large market.
 Market development: In this strategy, the company will offer the existing product in
the new market and this can be done by doing the effective market research(Morozko,
Morozko and Didenko, 2018). This helps out to increase the revenue of the company and
also with that frames the profitability and advancement in the market size.
 Market penetration: It is the aspect in which the company tends to increase their market
share by selling the existing products in the existing market. Uber can decrease the price
of their cab service so that they can increase their sale by attracting the large group of
customers.
 Diversification: It is the aspect in which the an organisation tends to launch the new
product in the new marketplace as it can be done by doing the effective market research
so that they can meet the needs and demand of the potential customers(Mohanty and
Vyas, 2018). The high risk is associated with this aspect and so Uber have to take care
for all the elements so that they can successful launch a new product.
It is analysed from the above discussion that Uber is suggested to adopt the market
penetration so that they can make the expand their market by giving the customers the efficient
cab service in timely manner. This will benefits the company in order to increase their market
share and the profitability.
TASK 2
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks
Strategic capabilities and their key components

Strategic capabilities is the process of making the enhancement and the improvement in
the business strategy so that they can implement the modified strategics in order to meet the
competitive advantage in the market(Mathews, 2018). Strategies is comprises with the six
elements and they are strategic purpose, goals, action plan, tools for analysing and vision and
value for an organisation. These aspect of the business helps in enhancing the strategy of the
company and all the operations will be rightly accomplished.
Resource based view strategy
It is the managerial framework which is used by the organisation in order to determine
those strategy which can exploited by an organisation in order to get the sustainability and the
competitive advantage. There are two types of resources tangible and intangible resources,
tangible resources includes the building, land, machine, equipment and capital. On other hand,
Intangible resources can be managed by the Uber such as intellectual property and trademarks
so it is important for an organisation to use the various resources in such a manner so that they
can be effectively utilized in accordance of making unique products.
McKinsey's 7S model
It is the framework which help in analysing the organisational design of the firm so
evaluating the seven internal factors and it is important that these factors must be aligned with
the company so that the company can make the best use of each resources then only Uber can
able to reach to their desired goal. Various factors of this model is explained ad follows:
 Strategy: It is the action plan which is designed to frame the various strategy in order to
achieve the desired goal (Kabir, 2019). In context of Uber, it is important to robust the
strategy of the various operations so that they can make the customer expectations.
 Structure: It is pathway in which the operations or the department of the company is
divided and whole operations is running so it is important for the Uber to have the
appropriate structure so that there will be easy of performing the each task in the different
levels of operations.
 Systems: It is the system in which the company is framing their polices and the rules in
order to make the best use of their resources. Maintaining right system tends to
implement the change with in the organisation in an appropriate manner.
 Skills: It is concern with the skills and competencies of the work force so that they can
work appropriately with their full effectiveness so that organisational goal can rightly

achieved. Uber must emphasis on their capable employees so that they can handle the
critical situation easily.
 Style: It defines the leadership style by the leader of an organisation is managing their
business operations so that they can attain their desired goal in an appropriate manner.
Uber is using the participative leadership style in which employees able to give the
valuable feedback in order to contribute in the growth of the company.
 `Staff: It is the main consideration of the business to have the potential staff so that they
can complete the specific task in an appropriate manner and Uber have to focuses on
hiring, training and the reward management of the employees(Jayawardena, Ahmad and
Jaharadak, 2020).
 Shared values: It is the last component in which the standards and the norms of the
company is measured so that Uber can make the establish a right code of conduct in their
operational activities.
VRIO framework
 Valuable: These are the resources which give higher level of profitability and success to
an organization so it is important for the company to utilized their valuable resources so
that they can meet the competitive advantage in the market and company is posses the
valuable resources then it can increase their profitability and productivity. The valuable
resources of Uber is their supply chain and employees.
 Rareness: It is the aspect in which the firm understand the rareness of their product that
the product is rare or not. It includes the manufacturing and the production machines that
will help in getting the rareness in their products and company can able to establish a
good brand image in the market and expand their market share(Ciasullo and et. al.,
2020). Uber is focusing on providing the unique products so that they can attain the
higher profitability and growth with the help of their innovative products.
 Imitable: This is the factor which is concerned with the launch of the products that can
not be copied by the competitors so that the company can establish a good brand image
in the market. If the product of Uber will be copied by their rivals so they have to sell
their product in the less prices and this will decrease the overall profitability of the
business.

 Organisation: It is important for every organisation to have the proper control over the
various resources of the organisation so that they can be rightly utilized in order to make
the effective use of company's funds. Uber have to mange their resources so that they
establish a right code of conduct within the organisation and make the effective use of
employees, suppliers, investors and the stakeholders of the firm.
TASK 3
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm.
Porter's five forces is the business tools which help in identifying the strategic decision
by analysing the future outcomes instead of considering the present competition. In context of
Uber, five aspects of this model is explained as follows:
 Threat of new entrants: It is the aspect in which an organisation is having the threat
from the entry of new firm (Christ, Burritt and Varsei, 2017). Uber is the leading
company which is operating their business at the global level so it is not possible for an
organisation to invest much in their operations and activities. Due to which the new entry
of firm can not compete with the Uber in terms of market share and the high quality
products to their potential customers.
 Bargaining power of suppliers: In the modern world, there are many competitors in the
market and due to which there is increase in the bargaining power of the suppliers is high.
If the rivals of the Uber pay the more amount to the suppliers then they will not supply to
the company and this will leads to increase in the prices of the Uber and company have to
face the dissatisfaction of the potential customers.
 Bargaining power of buyers: In the competitive world, there is wide range of choices
for the consumer in order to purchase the desired products and services. As there are hike
in the competitors of the Uber so that the bargaining power of the consumer is high and
crease the risk for the company.
 Threat of substitutes: As the technology is changing day by day the company is making
advancement and adopting the innovation in their products. Due to which there is a high
risk of substitution with in the organisation(Cheung and et. al., 2021). Uber is offering the
quality products and customer will feel reluctant in buying those products.

 Rivalry among existing competitors: There are many competitors in the market which
are establishing the good brand image in the market. Ola cabs, Lyft are the top
competitors of Uber in the market that is creating the bad impact on the profitability of
the organisation. This is because of company is using the competitive pricing strategy in
order to establish a good brand image in the market by offering the innovative and
advance services.
TASK 4
P4 Apply different models, theories and concepts to interpret strategic planning for a company
Porter's generic strategies
It is business strategy which the company to identify the ways by which they can attain
the competitive advantage in the marketplace. Basically, there are three type of strategy i.e. cost
leadership, differentiation and the focus. In context of Uber, business strategy is explained as
follow:
 Cost leadership: It is the business strategy by which the firm can target the customer
easily by offering the minimum pricer products so that they can satisfy their need and
demand(Atnashev and Vashakmadze, 2017). In context of Uber, they can offer the
discounted rate to their potential customers by which which they can retain their brand
and also suggest the products of Uber to their family and friends. It helps in increasing
the profitability of the organisation by selling their product on large segment.
 Differentiation: In this aspect the company tries to offer the innovation and different
products in order to meet the changing demand of the customers and this make the
company different form the other brand in the same industry. Uber can offer the
innovative products to that they can establish good brand image in the market.
 Focus: It is the aspect which involve the two aspect cost focus and the differentiation
focus, In context of cost, the company have to determine the effective cost so that
everyone can make the purchase of the products and in context of Differentiation, the
company must focus on making the innovative and advance products.
Bowman's strategic clock
Browman strategic clock is the model that helps the company to get the right strategic
positioning for example the way in which the company can establish their market position in

order to meet the high competition in the market(Anwar, Azis and Ruma, 2019). Aspects of this
model is explained as follows:
 Low price and low value added: As the product of the firm is not differentiated and the
company is offering the low price products so that customer will not attract their brand.
 Low price: In context of Uber, they can establish themselves as the low prices leader and
generate the high profitability and increase the sale of the company.
 Hybrid: It includes the low price and differentiation in the product and this benefits the
Uber in order to increase their overall sale.
 Differentiation: Under this aspect, Uber have to focus on innovations and the
advancement in order to establish a good brand position in the Market.
 Focused differentiation: It is applicable to the luxury products as it includes the high
price over the products due to its high perceived value.
 Risky high margins: In this aspect, an organisation may face the huge risk and Uber is
using the high price policy without giving perceived value.
Marketing plan
Executive summary
Uber is the American technology organsiation and they are dealing in the car rental
services to the doors of the customers so that they can have the better and easy accessibility of
the vehicles. They are focuses on giving the best services across the globe so that they can make
the best use of their resources.
Vision
The vision statement of the company is to provide transportation for everyone
everywhere that can be accessible to everyone.
Mission
The mission statement of the company is establish the sustainable business environment
so that they can be the market leader.
Objective
 To provide transportation to everyone.
 To ensure the quick services to their customers.

Financial table
Developing and Increase Cost £751,000
Fixtures, Build out and furniture £462,739
Development start up expense £117,000
Five months working capital £49,261
TOTAL £1,400,000
Controlling measures
In order to evaluate the various change in the business and also tackles the various
activities which are running within the organsiation. Key indicator is the aspects which helps in
making the best use of all the resources by evaluating the unnecessary aspect and eliminate from
the business environment so that business can be run in an appropriate manner.