Business Strategy Report: Analyzing Uber's Macro & Micro Environments

This report provides a comprehensive analysis of Uber's business strategies, examining both the macro and micro environments impacting the company. It delves into the application of various analytical frameworks, including PESTLE, SWOT, and Ansoff's growth vector matrix, to assess the external factors influencing Uber's operations. The report also critically analyzes Uber's internal environment, focusing on its strategic capabilities through the lens of the VRIO framework and benchmarking techniques. Furthermore, the report explores Porter's Five Forces model to evaluate the competitive landscape and concludes with an interpretation and strategic planning based on different theories. The analysis covers aspects like political, economic, social, technological, legal, and environmental factors, as well as the company's resources, competencies, and value chain activities. The report aims to provide insights into Uber's strengths, weaknesses, opportunities, and threats, offering a holistic view of its business strategies and market position.

Businesses strategies

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Analysis the impact of macro environment on the organisation.......................................4
TASK 2............................................................................................................................................7
P2 Critically analysed the internal environment of an organisation.......................................7
TASK 3..........................................................................................................................................10
P3 Porter's Five Forces Model to analyse the competitive force of market for organisation10
TASK 4..........................................................................................................................................14
P4 Interpret & devise strategic planning through different theories....................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
For the success of business, every organisation need to make an effective business
strategy, it involves the planning for different aspect of company, which is done by step by step
analysis of macro and micro factors. Macro and micro factors have both positive and negative
impact on the growth of businesses, so it is important to make business strategies on the basis of
internal and external environment. Which finally gives a positive result and help to reduce future
threats and present weaknesses of organisation. Business strategies involves planning for,
differentiated product, customer target, cost strategies, production and operational techniques,
management of human resources, transportation etc. as business is large area of work which is
further divided into different functions, those functions and operation is update and manipulate
according to the macro and micro environmental impacts. Uber is the well-known transportation
company which provide multiple services related to the transport such as cab facility, bike ride,
food delivery, rental facilities of bikes and cab, courier services etc. In this report we are going to
conduct macro and micro environment analysis in order to help the organisation to improve their
business strategies for effective growth and profit (Aldea, A., Iacob, M. E. and Quartel, D.,
2018).
TASK 1
P1 Analysis the impact of macro environment on the organisation
Macro environment is an external elements and factors which highly impact the almost
every type of industries and organisation, because those elements are the part of every business
plaining. For example, macro factors are, social elements, economical elements, political
elements, environmental, domestic, legal, technological growth (Atepor, L., 2019). Objective of
the Uber is to provide transportation for every one in every place. Vision of Uber is to provide
safer, cheaper and reliable transportation for everyone, along with the better services Uber is
trying to provide higher employment. Recently its large sub units are having 1000 employees, it
possesses 67% ride market share and 24% food delivery market share at present. There are the
multiple types of macro environment analysis frame work which helps to make and improve
business strategies such as PESTLE analysis, SWOT analysis, Ansoff's growth vector matrix
(Bush, M.A., 2016).

PESTLE analysis
This provides a frame work to analyse the impact of macro environment on organisation
and to improve the business plaining. It involves the analysis of political, economic, social,
technological, legal, environmental factors.
Political elements: political agendas and rules highly impact the business process, such
as business of Uber is affected by taxes rules of different country, trading policies, trade
restriction, Uber is facing all these problem's because of their international business throughout
the world, so the plaining of Uber should be done according to these factors (Chen, C.J. And et.
al., 2018).
Economic factors: the growth rate of population, financial factors such as
unemployment leads towards, financial problems in the life of consumers, it impacts positive if
the financial growth of country and their population increases, and negatively if the financial
growth and demand of the product decreases due to lake of employment and money. But Uber is
using effective cost strategies to set their business according to the situation, it is using lower
pricing strategy which helps it run the company in flow.
Social factors: It involve the cultural value, and the current needs of society and Uber is
using this factor to provide effective services on the basis of consumer’s demand, it is using safe
pick up and drop strategies. which satisfy the consumers in terms of safety?
Technological factors: In the case of Uber technological factors highly impact it in
positive way because software, internet, transportation technology helps the Uber to provide time
saving and attractive services. Such as the time saving and effective mobile applications.
Legal factors: there are the multiple laws and rules which helps the Uber to safe their
ideas and strategies such as IPR (intellectual property right) and along with this sometime legal
factors prevent the company to work due to changes of some law related to the pollution. So for
that situation company need to follow all the laws of pollution emission and quality standards.
Ansoff's growth vector matrix
This matrix technique helps to focus on the different functions of business related to the
market place, aid to improve strategies of those functional areas to be more effective than
competitor at market place (Fraser, J., 2019).

Market penetration: in that functional area Uber have to focus on the achievement of
market share and improving the promotional and marketing techniques and Uber is having brand
image which helps in the mouth to mouth marketing.
Product development: by the help of this strategies Uber get help to focus on the
external elements related to the product variety's, and it is started by the Uber. Services varieties
are continuously improving.
Market development: by the helps of this strategy Uber is expending their target market,
by focusing on the that macro factor of competitor. And Uber is successfully using this factor as
it has their business in multiple country and developing it more.
Diversification: this part of the matrix involves the development of different kinds of
product, by selecting the different field of market. For e.g. Uber is a particularly related to the
travelling field but it also diversifying their business by adding different services such as food
delivery (Madhushree, R. R., Kumar, A. and Aithal, P. S., 2018).
SWOT analysis
Strength weaknesses
Uber strength is its business strategy as it is
using low investment business process, by
giving the chance to the individual’s who's is
having car or bike, by this saving of money
and increasing of profit is done.
Other strength of Uber is their lower pricing
strategies, which attract the consumers and
make the strong relationship.
Somehow its profit is and business
management is dependent on the external
drivers and they can leave the company any
time.
Other weaknesses of Uber is its controversies.
Opportunity Threats
Increasing need of consumers for
transportation facilities.
And the modern technological development
helps the Uber to increase their business
growth.
The developing competitors of transportation
facilities are the threats for Uber.
Unavailability of drivers can be a threats for
company, because drivers can change their
company and business any time.

There are the various external factors which effects the Uber, but the highly impacting
factor is economic and technological elements, and the main part of management decisions is
technological factors, by Uber modern techniques such as software and internet application,
newly modified vehicles are use in continuous basis. Helps in the long term business
sustainability (Maniora, J., 2017).
TASK 2
P2 Critically analysed the internal environment of an organisation.
Strategic capabilities are process which refers to organisation used as all the resources
and competencies in order to easily compete with other brands and face competition at market
place. Resources and competence both are asset of the organisation which considered as strategic
capabilities as well as organisation utilized in effective and efficient way due to successfully
compete in business environment. In relevance of Uber, it is one of leading company as well as
utilized advanced technology and resources which helps to compete with the external
environment and exploit new opportunities (Maniora, J., 2018).
Resources based view strategy-: These is strategy which organisation utilized in order to
organisation determining different resources and asset because gaining competitive advantages
and developing goodwill in the market.
Mckinsey's 7S model-: It is model or tool which organisation utilized in effectively with
the help of these model easily identifying new areas and resources in order to developing new
strategies and grape market opportunities. There are 7S model which are categorized into Hard
as S and soft as S. Hard factor considered as strategy which are planned by organisation in order
to developing brand image in the market, structure refers to division of department in order to
analysed effectively because each department role has divided and accordingly performed. Third
one is system which refers to organisation conducting such rules and regulations on that basis
employees accomplished their work (McAdam, R., Bititci, U. and Galbraith, B., 2017).
Apart of that soft S include skills which refers to it is ability and capabilities of
employees in order to performed the work in effective and efficient way, staff is a resources or
valuable asset of an organisation which utilized in effectively in order to accomplished the goal

and objective of company, third one is style it includes various activities and methods so
employees followed such rules, regulation and guidelines and performed effectively (Ordóñez de
Pablos, P. ed., 2016).
These tools which is formulated by top level of management of Uber because they effectively
established in the organisation which result as positive outcomes. These 7 factors essential to
followed in each and every organisation in order to fulfil the requirement of customer and
gaining competitive advantages.
VRIO Framework
VRIO it is model or tool which effectively adapting by an organisation due to easily
compete with their competitors and grape market opportunities as well as set standard in the
mind of customers. It is tool which organisation easily gaining competitive advantages in order
to successfully accomplished the goal of company. It stands for Valuable, rare, imitability and
organisation (Bush, 2016). In context of Uber, it used these model in order to provides the all
kind of facility to customers along with evaluates innovation, customer loyalty toward the
products, service quality, competition at market place and financial resources are essential for
sustainable business.
Benchmarking-: These is method which organisations set as standard so employees
perform on that basis and gaining competitive advantages. It includes business model used these
techniques in order to grow, successful established the organisation at market place. There are
four types of benchmarking standard which are mentioned below as:
Performance benchmarking-: These is the first form of benchmarking which includes
ample numbers of technologies which utilized by organisation. In reference of Uber, it involves
the KPI's and considered as technological factors which are essential to successfully run
business. It includes set standard on that basis identifying gap and then take corrective measures.
Practice benchmarking-: It is process which organisation continuously practising to
fulfil these gap and improve their work performance. There are ample numbers of changes in
innovation and technology of Uber in order to brings the new technology and practice for these
benchmarks (Ordóñez de Pablos, 2016).

Internal benchmarking-: These is process which includes ample numbers of units,
department, procedures and geographies in order to effectively established so organisation
successfully growing and developing goodwill as well brand image in the mind of customers.
External benchmarking-: It is process which set standard on the basis of their
competitors and accordingly organisation performed and compared them in order to gaining
competitive advantages. Uber utilised effectively and these benchmarking provides maximum
benefits (Pai, S., 2017).
Value chain analysis
Uber utilised various strategies in order to easily compete with the external environment.
It utilized as inbound logistics which come as primary activities of Uber involves the
technologies, hardware and equipment’s. It includes various operational activities and outbound
logistics which is not applied on service industry. Marketing and sales both are important
department because they are engaged to promote and sales of the products which result as
increasing profitability of company. Digital marketing and social medium utilized by Uber in
order to increasing sales revenues. It includes various factors so they provide high quality
services to customers in order to spreading positive word of mouth (Sellers, L.C., 2017).
On the other hand, they are including supporting activities which refers to infrastructure
because they developing innovative software set by Uber due to riders provide safe and secured

ride for customers. Human resources management of company effectively managed in order to
provide training to its employees and they easily performed task and developing new
technologies. Procurement of various raw materials and resources in that way which utilized in
effective and efficient way.
Cost-Benefit Analysis-: These is referring to adding all the activities and benefits which
come under as action that is to be taken because easily comparing with the cost so organisation
gained the cost benefits. It is essential for Uber they are effectively analysed cost-benefit strategy
so they adapting in order to successfully apply it on business strategy of Uber. It includes brain
storming activities which includes different benefits and costs both of these so it all things helps
to achieved the goal and objective of company.
There are ample numbers of skill sets which utilized by organisation to successfully
operate business activities. It is essential for company for focusing their strength which includes
Uber utilized as advanced technology, structure of business and many more. Weaknesses of
company they evaluate the competitor which are available at marketplace.
TASK 3
P3 Porter's Five Forces Model to analyse the competitive force of market for organisation
Porter's five force model provide effective framework for study of the business
competition by analysing the five force of market define by Porter's. Porter's analysis of Uber is
given below.

Industry rivalries: It helps to analyse the present competitors of Uber; they are increasing their
business throughout the world. But there is an external force of competitive market because on,
different country's multiple options are present by different organization providing the same
services. So Uber have to face higher competition and have to be prepare for that by changing
and manipulating there plain. Every competitor is using the same and effective services so that
Uber need to update their plaining strategies and services (Shin, D.I., 2017).
Threats of new entrants: this is the second part of framework which helps companies to
find out the new entrance of same business competitors. For Uber there are the higher threat of
new entry's, because it very easy to copy the business concepts. It is very easy for new
businessman to enter into the same market of existing business, by paying the lowest cost for it.
So that's why new entry's easily get establish in the market place.

Bargaining power of suppliers: For every kind of organisation suppliers are the
important part of their business because they provide the resources for the functioning of
businesses. For Uber drivers and the other individuals who provide the vehicles are the suppliers
of their business resource, and the bargaining power vendors and drivers are higher in the case of
Uber.
Bargaining power of buyers: Customer can’t do bargaining directly but they can shift
towards the different company because they are cost sensitive, in the case of Uber consumer
have the power of bargaining but in indirect way. Once the pricing of other brand decreases the
consumer shift towards that brand, and for that company have to change their pricing strategies
according to the customer demand.
Threats of substitute: In this step for Uber it involves the analysis of different substitute
for travelling rather than, same competitors. Such as bus, metro, train etc. and from these
substitute one of the most impacting factor is metro. So for that Uber have to focus on these
elements for better strategy.
Balance-score-card
It provides a matrix framework for calculating the internal functioning of organisation and
external outcome of the businesses. By the help of this techniques company become able to find
out the profit, loss, quality and drawback of business, and one the basis of this organisation can
change and improve their business functions. This matrix is divided into four parts explained
below.

Financial: Cost management strategies of Uber is very effective it uses the lower price
strategy which increase the profit along with consumer’s relationship.
Educational and innovation: In the prospect of Uber innovation is important because
implementation of new technology helps the growth of organisation. And Uber is good at this
factor because it evaluates their services and management techniques. Uber give the education to
their employees related to the upcoming problems like Covid 19 and respect of customer.
Internal process: Uber is very focused about the quality of their services and pricing
strategy of their business. Which increase the customer, as Uber is having 110 million users per
month.
Customer prospective: In the case of Uber consumer rating and reviews helps the
organization to analyse their value at market place, and its strong factor of Uber.
For Uber the various strategies which helps in improving competitive edges and position of
Uber at market place such as porter's five force model helps in the improvement of competitive