UBER: Auditing Report on Financials, Strategy, and Governance

This report provides a comprehensive auditing analysis of UBER, examining its financial performance, strategic posture, and corporate governance. The report delves into UBER's current situation, including its financial data and market share, and evaluates its strategic posture, mission, objectives, and pricing strategies. It explores the corporate governance structure, including the board of directors and top management, and assesses the external environment, considering sustainability issues and societal and task environments. Furthermore, the report analyzes the internal environment, covering corporate structure, culture, resources, and functional areas like marketing, finance, research and development, operations, HRM, and IT. A situational analysis, review of mission and objectives, and strategic alternatives are also provided, culminating in a recommended strategy, implementation plan, and evaluation and control mechanisms. The report concludes with a summary of findings and recommendations.

Running head: Auditing
Auditing
Name of the Student
Name of the University
Author Note

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Executive Summary
The reports how about the company UBER and also show about the different aspects of
company financial as well as other aspects of company. It show about the different duty
which the management is able to perform in the market as well how it is performing in
company activities.

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Table of Contents
Introduction................................................................................................................................5
Current Situation........................................................................................................................5
Current Performance..............................................................................................................5
Strategic Posture.....................................................................................................................6
Corporate Governance...............................................................................................................6
Board of Directors..................................................................................................................6
Top Management...................................................................................................................7
External Environment................................................................................................................9
Natural Physical Environment: Sustainability Issues............................................................9
Societal Environment...........................................................................................................10
Task Environment....................................................................................................................11
Summary of External Environment.....................................................................................13
Internal Environment...............................................................................................................13
Corporate Structure..............................................................................................................13
Corporate Culture.................................................................................................................14
Corporate Resources............................................................................................................15
Marketing.........................................................................................................................15
Finance.............................................................................................................................16
Research and Development..............................................................................................18
Operations and Logistics..................................................................................................19
Human Resource Management........................................................................................20

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Information Technology...................................................................................................20
Summary of Internal Factors................................................................................................21
Analysis of Strategic Factors...................................................................................................22
Situational Analysis.............................................................................................................22
Review of Mission and Objective........................................................................................22
Strategic Alternatives and Recommended Strategy.................................................................22
Strategic Alternatives...........................................................................................................22
Recommended Strategy.......................................................................................................23
Implementation........................................................................................................................23
Evaluation and Control............................................................................................................24
Conclusion................................................................................................................................24
Reference..................................................................................................................................25

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Introduction
Auditing is the process of examine the financial books of company and giving opinion
whether the company financial statement are showing true and fair view or not. Auditor
check different book of company and check whether it had follow all the rules and regulation
while preparing the financial statement or not (Ahn et al., 2015). It takes into consideration
the auditing standard so that it can able to perform the activity of auditing properly in
company financial statement. The report is based upon UBER Company as it shows about the
different aspects of company. It show the corporate governance of company as how it is able
to follow the rules and regulation, it show the company marketing strategies by swot, pestle
and Michael five force model (Armstrong et al., 2015). Lastly it shows about the finance
department as how the company is able to have finance, HRM aspects of company as well the
Information Technology of UBER. It contains all the details of company and how they are
able to play different role in the market.
Current Situation
Current Performance
As per the financial data of company it can be said that they were having huge loss in
carrying their business operation, in 2018 it able to convert its loss into profit. As per the
market share is been consider it can said that it is not having much increase in the value
which denote that the share are not purchased much in business (Ayala 2016). As per the
Earning per share is concern it is very low which show company is not able to meet the
shareholder expectation as the company is not giving proper amount of return upon the
investment.

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Strategic Posture
Company is having mission to became one of the best in the industry and able to
provide their services worldwide but as per the position of the company is seen it not able to
generate much amount of revenue by carrying business activities. It have different amount of
strategies in company business so that it able to make proper amount of activities and able to
expand its business operation (Bhargava, Bafna & Shabarisha 2018). It is having normal
pricing strategies so that each individual is able to adopt the services properly and effectively.
It able to focus upon all type of customer whether rich class or medium class and able to
provide quality service to both type of customers.
Corporate Governance
Board of Directors
The board of member consists of both internal as well as external members. The
internal member in Board is Dara Khosrowshahi, Travis Kalanick and Garrett Camp. The
external members are Ronald Sugar, David Trujillo, John Thain, Arianna Huffington, Wan
Ling, Matthew Cohler, Yasir Al-Rumayyan and Ursula Burns.
The Board of Directors does not hold any share of company as they are not allow to
hold any share of company in which they are acting as directors.
The company is listed and so the share is been traded publicly and anyone who is
interested in investing in company can able to purchase the required amount of shares. The
company is not having any different amount of share it only had one type of share which
contain one share = one vote (Bourgeois, Wierzba & Walker 2016). So it only able to have
the normal type of share, which is generally traded.
The Board member of company is having many different expertises as each member
is highly efficient in their position. They have different expertise as per the requirement of

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business (Cadle, Paul & Turner 2014). Each board member is having highly experience and
able to use their knowledge upon the company management. Many member of Board are
having international exposure and even the company is able to have much international
business operation. Each member in Board have been served for more than 1 year in
company as well as they are able to hold different position in company board.
Each member on Board is able to meet the requirement of company in maintaining the
sustainability policy in company properly and effectively. They have made proper policy so
that the company is able to meet all the requirement of sustainability in company business
activities (Chu 2015). They check each proposal or decision of company in regards of
environment so that it can make sure company is not affecting the environment and able to
carry the business operation properly and effectively.
Top Management
The top management of the company consists of Co-Founder, CEO, and VP of Global
Tax and Accounting. It also has CTO, Chief Product Officer, and Global Operations Analyst.
The management consists of proper expertise as it contains many knowledge people
who are holding different position in the company (DeFond & Zhang 2014). They apply all
their knowledge in company so that it can able to business activities properly. Yes the
company have international expertise and even they able to carry different international
business activities in company.
The top management is able to play a vital role in company business activities as they
take necessary decision in company so that it can able to have proper business. It is the
responsibility of management to make necessary decision so that it can able to reach
company goals and objective properly and effectively. So it can be consider that the company
management is responsible for taking necessary decision in business activities. The company

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is having proper management so that it can able have to make proper amount of strategic and
to meet all the business objective the company have make systematic approach and policy so
it can able to make proper application of its strategies in the company business goals and
objectives (Dimopoulos & Wagner 2016).
Communication is very big aspects of company as it should have proper
communication between the top management and low management and to make sure the
company is having proper activity so to make it the company follow an organizational
structure so that each one can able to meet their requirement properly and effectively . They
able to hold different meeting and one to one session so company is not having any
communication barrier (Dockalikova & Klozikova 2014). The strategies are made taken into
consideration all aspects so that the company is able to meet the requirements properly and
effectively. It make strategies while taking consideration of ethically practices so that the
company does not carry any method which is not proper and can affect the company good
will or any other aspects. The top executive of company is able to fulfil all the requirement
properly and effectively so that the company is able to meet their objective and goals
properly (Du Plessis, Hargovan & Harris 2018).
The company top management is sufficient to know about the company future
activities as it can able to meet all the requirement properly in company. The management is
capable of achieving the business goals and objective properly so this can be said that the
company does not have to change the top management structure as it will able to make proper
utilization of resources and able to meet the required amount of expertise which is been
required in carrying business activities (Eskandari et al., 2015)

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External Environment
Natural Physical Environment: Sustainability Issues
As per the opportunities is been concern there are many opportunity which the
company will able to meet as it can able to expand its business as the customer want to get
more fast service which is not available in normal cab as they are not properly organized so
as the UBER is providing proper organised cab so this will help them to get more number of
business in market (Feurer et al., 2017). It can expand its business as the modern community
is having more usage of smart phone so as the company is based online so it help them to get
more customers as it will available to provide more amount of service to customer more
easily and effectively. It can seen from the economy that there is more amount of disposal
income so the customer will able to spend more upon the can this will help them to increase
or expand their business (Furnham & Gunter 2015).
Each company have to face certain amount of threats will carrying their business
activities so the threats which were there in company is that the customer can easily able to
switch the company as there are many company providing same kind of service so it is hard
for the company to stop customer from shifting in brand, as it have started business by paying
high amount of money to drivers so this make their margin very low so if the company have
to sustain in market than it have to work upon increasing the margin so that it can able to
meet the requirement of business (Gould & Desjardins 2015). There are so many business
where it have so many unorganised cab so to overcome the one company have to carry
different operation which will help them to meet the company requirement properly and
effectively.
Each factor remain same in each region but it impact can be different as in some
region there can be less competitors so this depend upon region to region.

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Societal Environment
As per the economic is concern it can be said that it have helped people by providing
job as in sharing economy many people able to get job in the company so this help them to
gain more customer as they provided more amount business to customers. It able to create
more amount of competition low as it cleared all the unorganized cab services in the
economy (Greer 2018).
The technology is been concern it have advanced technology as the company is
working in an online portal so it should have to maintain a high level technology so that it
able to meet all company requirement properly and effectively. As if the company will have
proper amount of technology than it will able to provide better service to the drivers and they
will able to carry business operation more effectively in business (Griffiths 2016).
As per the political and legal aspects is been concern it can said that it become very
difficult for the company to cope up in economy as many government does not able to allow
them as it able to have a sharing economy which is very hard for the government to judge as
in this it have to check properly the amount of tax which is to be paid by the individual who
are working in sharing economy (Groomer & Murthy 2018). As there are many other local
taxi provider so it was hard for government to come up with cab service so UBER have faced
many problems to start their business in different economy conditions. As per legal is
concern company have to meet up many regulation so that it can able to meet up the legal
proceeding properly and it also have to that many wrong image of company was there so it
become hard for the business to run it smoothly in such factors (Gürel & Tat 2017).
As per the social is been concern it can be said it help the customer to reach their
destination more easily and effectively as it bring the cab facility within the hand so this help
them to overcome the problem so waiting so this will help them to get more number of

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customer in company. It able to gain it brand loyalty upon two things as it able to provide
best quality of service in cheap price so as the company is charging less amount of price so it
will help them to reduce the customer reduction rate in the business (Hall 2015).
The forces which are mention above are can be different in other region also as it will
directly depend upon the region economy and market structure. So if the company is able to
carry business activities in different region it have to face the problem as per the region in
which it is carrying business (Hamilton-Hart & Stringer 2016).
Task Environment
There are many forces which drive competition in market and it is the responsibility
of company management to make sure to look over those force carefully so that it can able to
meet up the forces effectively. So the force as per UBER is shown below:
Threats of New Entry - It lack new entry as any new firm can easily able to enter in the
market and provide the service in less price so this will directly affect the company financial
position and also it will decrease the company overall profit. As the new firm does not have
to spend much because all the research are done by UBER so this will help them to start the
business more easily and effectively (Hishe, Asfaw & Giday 2016).
Bargaining Power of Suppliers - The company is not able to own the car so it have to
outsource the same as it is not owing the car so it will tough for the company to do the
bargaining so the driver or suppliers will able to have high force of bargaining so it will also
affect the company overall profit and also company have to agree with the term and
conditions given by the cab owner so it can able to run the business operation smoothly
(Jaligot et al., 2016).
Substitute in Market – The industry in which the company deals is having high number of
substitute as the local taxi are the closed substitute so this all can easily able to do customer