Management in a Global Business Environment: 13 Cabs Essay

This essay examines the international expansion challenges and opportunities faced by 13 Cabs, an Australian taxi company, within a global business environment. The analysis includes a comparison of 13 Cabs with competitors like Uber and Ola, highlighting key differences in services, pricing, and market presence. The essay explores the challenges of international expansion such as language barriers, compliance issues, and competition, while also discussing potential opportunities like new revenue streams and foreign investment. The assignment also references Qantas as a practical example of an Australian organization navigating the complexities of international competition and expansion, discussing Qantas's successes and failures in overseas markets. The essay also provides insights into how conflicts and solutions could have been handled more effectively, offering a comprehensive overview of the company's strategic positioning and potential for future growth in the global market.

RUNNING HEAD: MANAGEMENT INA GLOBAL BUISNESS ENVIRONMENT
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13 cabs
Management in a global business environment
Essay
Student Name
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International expansion is a complex process that required heavy planning and funding.
13cabs a leading Australian company runs its business online by implementing the Taxi Tracker
feature on the smartphone applications. The company decided on overseas expansion in the other
countries so this report analyses the challenges that a company might face and effective solution
process. Qantas gives as a practical example because the company had recently expanded its
business from Australia to other countries (Butler, 2012)
13cabs is a leading international taxi company in Australia, which operates about 7,400
taxis through a number of companies or entities. The company also runs its business online by
implementing the Taxi Tracker feature on smartphone applications. The mobile application of
the company helps people by storing server on the 13 cabs with the photo registration number of
taxi and GPS coordinates where the photo is located this feature of a company is known as
geotagging. Geo-tagging feature of 13 cabs is available on the I-phone, Android and Windows 7
apps. In 2012, the company launched a campaign named “Scare campaign” to targeting the
younger women, which is stopped due to the petition against it (13cabs, 2019).
13 cabs compared with the Uber and ola is transportation of choice for locals and tourists
in Australia. Uber give choices that are more different to the consumers from ever to get where
they need to go. The major difference between 13 cabs and Uber is price rides that 13 cabs take
the consideration of speed and flow of traffic but Uber do not take such type of consideration. 13
cabs compared with the DiDi, it has additional services such as DiDi bus, DiDi hitchhiking and
DiDi driver.
Feature Uber/Ola 13cabs Winner
1. Availability Its availability is in major
and regional cities such as
Coast, the sunshine Coast
and Newcastle.
13cabs distribute its services
in every city and towns in
Australia
13cabs
2. Types of cars Sedans, luxury sedans,
SUV’s, Vans provided by
the Uber and ola
Sedans, SUV’s, Vans
provide by the 13cabs
Both

MANAGEMENT IN A GLOBAL BUISNESS ENVIRONMENT
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Uber
3. Charges Uber does not charge based
on the moving and or stop-
go traffic.
This Taxi charge based on
moving and stops go traffic.
4. International
challenges
Uber enters into a
partnership with the
Southeast Asia to ride-
sharing rival Grab and
providing services to the
640 million potential
passengers.
13cabs mainly serves on a
domestic level and do not
have specific international
strategy.
Uber/ola
Expanding the business international bring many changes in the internal environment of
the company. 13cabs may face challenges in different languages, currencies and distance
measures whereas Uber solve the problem by changing the language setting in mobile
application. International expansion targets individual cities, which plays a unique factor in the
launching ( Evans, 2015). The transportation culture is different from countries to countries so
13cabs must evaluate the transportation services of the country in which it wishes to expand
otherwise various hurdles will come across. 13cabs must evaluate the technology to the
respective country in which the company planning to expand whereas Uber in the case of
transportation services give option to the customer to chat within the mobile application. Before
expansion in the international country, the company must evaluate the economic, political and
cultural environments to mitigate the barrier in expansion. The major problem arises in
international expansion is transportation barrier so the company before expansion must get the
solution (Dunnin, 2013).
Partnerships and collaboration is a better strategy to maintain international expansion.
The language and cultural barrier creates the communication barrier with the customers. The
company required appoints the person for managing the communication problems. Compliance
takes too much time in the international expansion with local rules and regulations whereas Uber
to solve the problem of legal issues build a management who will handle the laws and

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regulations on the global level. During the global expansion, 13cabs faced local competition in
different cities whereas Uber implements global expansion strategy includes marketing strategy
that helps to fight with the regional competition. Supply chain risks that cross boundaries is a
real mission for the taxi company, which includes imports, exports, shipping, and logistics.
Operational risks with hiring staff in another country are challenges for the 13cabs they required
to hire staff on the ground in the new country whereas, Uber solved the problem of operational
risks by reducing the price in the local area and offer incentives to the local drivers. The
specifications in the taxi industry in global expansion varied from country to country ( Kirabo,
2011).
The possible opportunities for 13cabs are new revenue potential, the ability to help more
people, great access to the talent, leaning a new culture, foreign investment opportunity and
improvement in the company’s goodwill. New revenue potential may increase the customer base
with the help of expansion. Foreign investment major benefit to the 13cabs as it increases the
shareholding in the company (Kolk, 2010).
The challenges of international competition and expansion in the next years will
increased due to the competition in the market. The operational risks will be increased due to
major population in the major cities. Due to the more competition, the services will be fast and
clean in international companies. 13cabs should found strong reliable support with international
companies. The drivers in the international market will find easily and more reliable for the
company. The global expansion has serious challenges in case of regulatory and competitive
hurdles in the major markets whereas, Uber apply strategy to planning to raise $1bn mitigate the
global expansion challenges. The competitive environment in taxi industry is very high because
of china and Asian countries that have powerful base in the industry (O'Neill , 2017) Company
may face challenges of low-margin and capital intensive business while performing the
international expansion with the other countries. One of the top challenges that company faces is
company forced to treat its contract drivers as employees. Company before overseas expansion
must settled the venture capital investment in case of any failure but companies faces challenges
funding for the global expansion due to the uncertainty. The challenges of international
competition and expansion in the next years will increased due to the competition in the market.

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The operational risks will be increased due to major population in the major cities. The mobile
applications must be managed for the global expansion as localization of the target country is
needed (Polly, 2011).
Company in the international expansion needs the strong financial support to handle the
operations risks in the target country. Company may use its borrowing funds or owner’s fund in
the regular operation it depends on the company. Owners fund would be better because it
protects the personal possession and assets of the company. Company must evaluate the business
risks in the target country and must prepare its plan according to them. Company may mitigate
the challenges by hiring the efficient staff that can handle the operations in way that is more
efficient. Before taking, a decision of overseas expansion 13cabs must keep some points clear
that is funds and target audience (Raymond, 2017). There must be a enough fund with the
company in case of any uncertainty or failure. Proper expert advice is needed for the global
expansion that mitigates the risks of the failure of the international expansion. Compliance plays
a major role in the overseas expansion so company must submit it due diligence certificate to the
respective authorities (Kolk, 2010). The customer support must be efficient and willing to
change the direction. By tapping on the foreign markets long-term opportunities increased for the
future. International compliance and regulatory issues may create the challenges for the company
so company must learn the different tax codes and different regulations of targeting country. The
main challenges arises in the international expansion is Data Cloud faced. The global expansion
has serious challenges in case of regulatory and competitive hurdles in the major markets. The
competitive environment in taxi industry is very high because of china and Asian countries that
have powerful base in the industry (Sathyajit , 2010).
Uber gained advantage of global business environment over 13cabs, as uber in the
international countries has a 60% shareholding base, which is higher than the 13cabs. Uber
has$50 billion in bookings excluding paying drivers and other fees and 13cabs have limited
bookings approximately $8 million. Uber has brand awareness in the global countries as it
purchases ridesharing rival in $3billion that increases its brand goodwill in market. 13 cabs brand
goodwill affected in “Scare campaign” controversy and separation from the Warranambool. Uber
has a strong financial banking for global expansion such as investors like Softbank, Toyota and

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Saudi Arabian government. 13cabs have not potential financial banking for the global expansion.
Uber’s technology was major brand advantage as its mobile application has more innovative
features and greta deals through the application give brand advantage over the 13cabs (Iqbal,
2019).
Qantas is an airways limited company of Australia and has largest international flights
and international destinations. Qantas has a good record in the domestic market but challenges
arise in the international market. The current situation of Qantas in international market they
planning a partnership with the Dubai-based carrier. Company is struggling in return
international profit of three years (Sathyajit , 2010). The top five overseas expansions of the
Qantas are New Zealand, Indonesia, America, Thailand and Britain. The major challenges faced
by the Qantas in overseas expansion is high fuel costs, warfare with some union and cause
$194M to the company. Qantas in overseas expansion faced the global economic downturn and
growing price or route competition in the industry. Company china’s expansion includes
adopting the market of middle-class travelers by launching the thrice-weekly flights from
Guangzhou to London Heathrow. The Qantas biggest competitor is China Southern Airlines and
treated as a biggest aggressive competitor of company (Kolk, 2010). China Southern Airlines
have unique strategy and maintains its value in the international market. In the United Kingdom,
Qantas expands its services to UK from weekly basis to daily basis. The wholly-owned
subsidiary the jet airways expand its operations in the New Zealand and the challenges that it
faced is foreign laws and regulations that forced company to pay penalty of $30,000 by the
government. Global pricing methods challenge faced by the company in which company
struggling to set the prices of food. The local competitor remains on the low cost and selling on
that price caused loss to the company (Wagstaff, 2015).
The international challenges that faced by the jet airways as its faces failure because of
the low-cost and other barrier in expansion plan. The main challenge for jet airways in the
international expansion is funding that it failed to take from the banks or other sources. The
failure of the jet airway is it less payment to the lessor. The other challenges of overseas
expansion are language and cultural barrier created the communication barrier with the
customers. Company required appoints the personnel for managing the communication problems

MANAGEMENT IN A GLOBAL BUISNESS ENVIRONMENT
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(Sathyajit , 2010). Compliance takes too much time in the international expansion with local
rules and regulations. Local competition is also a big challenge for the company during
international expansion. Supply chain risks that crosses boundaries is real task in the taxi
company, which includes imports, exports, shipping and logistics. The Qantas must before
expansion in the international country; company must evaluate the economic, political and
cultural environments to mitigate the barrier in expansion. The major problem arises in
international expansion transportation barrier so company before expansion must get the solution
(Shenkar, 2014).
The process of international expansion can be done in an efficient way if company follow
these steps, company must perform the “Deep Drive” due diligence before the overseas
expansion which includes the segmentation, gap and SWOT analysis through which company
can seize the market opportunity. Company must follow the six rules of thumb and need to
understand the language, culture and market components of the target country. For the more
effectively processed of the international expansion company must careful look at the practices
and policies. By simply intruding business, international company should initially invest time
building solid relationships with the country ( Evans, 2015).
Company should analyze the external environment and define the vision and mission.
Company must establish the beach head team system in which company with the executive
company builds the local team and saves the time and mitigate the risks. Taxi industry must
focuses on mobile application because all working is carried out through the application. 13cabs
must take suggestions from the expert app developer that brings extra efficient feature in a
mobile application. 13cabs must evaluate the business of taxi in targeted country to execute the
strategy. 13cabs develop the policies and procedures complying with the local requirements
( Kirabo, 2011). 13cabs must implements the competitive benefit program to attract the qualified
local drivers.
It is concluded that 13 cabs still has to overcome the challenges for the success of
international expansion. The company learned from the mistakes and set local market objectives
for expanding internationally. 13cabs must keep the different economic, political and cultural
environment while international expansion. Customization in the local markets required heavy

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financing and company must keep the reserves for carefully throughout the global expansion. In
the end, with the huge competition and challenges, 13 cabs still have potential to bring
international expansion in a sustainable manner.
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