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Topic:

Swift Influx of Technology in that Industry Longed for Operational Efficiency. With Uber

Essay Instructions:

ADMG4055 Seminar in Business Policy

General Guidelines for Case Analysis

 

I. Current Situation

A. Past Performance

B. Strategic Posture

1. Mission

2. Objectives

3. Strategies

4. Policies

II. Corporate Governance

A. Board of Directors

B. Top Management

III. External Environment

A. Natural Environment

1. Physical Resources

2. Wildlife

3. Climate

B. Societal Environment

1. Economic

2. Technological

3. Political/Legal

4. Sociocultural

C. Task Environment

1. Threat of New Entrants

2. Power of Buyers

3. Threat of Substitute Products

4. Power of Suppliers

5. Rivalry Among Competitors

6. Power of Other Stakeholders

IV. Internal Environment

A. Corporate Structure

B. Corporate Culture

C. Corporate Resources

1. Marketing

2. Finance

3. R&D

4. Operations and Logistics

5. Human Resources

6. Information Systems

 

Essay Sample Content Preview:

Uber Case Analysis
Uber Case Analysis
Uber is among the startups in the past five years that have instilled notable impacts in people's daily lives. The emergence of Uber in transportation has revitalized the industry. More people are motivated by the swift influx of technology in that industry longed for operational efficiency. With Uber, movement from one point to another has attracted a new dimension, a dimension that attracts innovation and competition. However, even amidst the impacts that it has created in the transportation industry, it is still worth exploring whether the organization is sustainable beyond its current success. This case analysis will explore Uber through the organization's key elements, including its current situation, corporate governance, external environment, and internal environment. The case analysis is vital in understanding Uber as a possible innovative startup that could change the future of transportation globally. 
Current Situation
Past Performance
Uber is ride-hailing application software that allows its subscribers to order private or shared car rides. The application has been successful, bearing its convenience compared to the traditional taxis and its lower prices. Uber's operations have been efficient, albeit with notable changes that could revitalize its success trajectory. The latest statistics indicate that Uber is present in 6 continents and over 700 cities (Insardi & Lorenzo, 2019). The company operates in three service portfolios and completes at least 14 billion trips each day. Uber has also paid $78 billion to its drivers. In the past five years, the growth of Uber has been significant, considering that it had 1 billion trips in 2016, 5 years after its launch. The increasing number of trips meant that Uber scaled faster to the market leadership of the industry. 
Uber's motivation to maintain market leadership is evident in its aggressive pursuance of the diversification strategy. Over the years, Uber has introduced prospects such as peer-to-peer rides through UberProp. The organization also introduced UberPool that allows its customers to share the rides. Ultimately, Uber also introduced luxury options such as Uber Copter that keep changing the organization's operational portfolio. The management at Uber is already focusing on various prospects. The advancements in 5G technology and the possible expansion of the internet of things have steered Uber into investing heavily in innovating driverless cars. Notably, while diversification gives Uber an avenue to strengthen its grip in the industry, the company faced challenges in 2020 with the emergence of the global COVID-19 pandemic. Uber recorded a $1.8 billion loss in the second quarter of 2020. The losses are explainable, and the organization intends to revitalize its position as the pandemic restrictions soften.
Strategic Posture
Uber operates within a defined strategic posture. The organization operates within a mission statement that intends to bring transportation to everyone everywhere. That mission statement is accompanied by Uber's intention to operate in almost every major city of the world with the lowest prices that the industry can offer (Insardi & Lorenzo, 2019). Uber also bears a vision statement that aims to make transportation as reliable as running water. Their noted motivation to invest in future transportation technology confirms their intent towards achieving the vision statement. To achieve its mission and vision statements, Uber has instilled policies that include operations within its resource limits. Uber also intends to be compliant with the laws that govern transportation in their operational settings. Some of the strategies that Uber has employed in its operations include diversification, innovation, and employment of talent to deliver futuristic outcomes. The application of the above strategies is evident in their innovations in smart rides and expansion of their operational base to accommodate most countries in the world. Uber's strategies are simple and smart, which leads to their pursuance of the organizational objectives.
Corporate Governance
Board of Directors
Uber's corporate governance is dependent on the efficiency of its board of directors. The board oversees the daily governance of the organization. The board also elects the chief executive officer. Currently, the Uber board of directors consists of 10 members. The board is chaired by Ronald Sugar, who was the former chairperson and CEO for Northrop Grumman. The other notable members of the board include Yasir Al-Rumayysn, the managing director of Saudi Arabia's public investment fund, Ursula Burns, the chairman and former CEO of VEON Dara Khosrowshahi, who is the current Uber CEO. The board also consists of partners and co-founders of Uber. The board's significant input was the change of voting rights following the scandals that faced the CEO. Still, the board remains the ultimate decision-making organ at Uber. 
Top Management
Uber's management structure is hierarchical with identifiable members of the top management. Remarkably, it is at the top management that corporate decisions are made. The top managers also oversee the strategic development in the organization. Top managers oversee operations in various key performance prospects of Uber. Currently, the top management at Uber consists of eleven members who are led by Dara Khosrowshahi, the CEO and the overall overseer of organizational operations. The top management also constitutes Nelson Chai, the chief financial officer, Tony West, the chief legal officer and the company secretary, Nikki, the chief people officer. And Andrew Macdonald, who is the senior vice president of mobility and business operations. The top management members include Pierre-Dimitri Gore-Coty, Sundeep Jain, Jill Hazelbaker, Bo Young, Raquel Sotil, Michael Strickman, Travis Freeman, and Janelle Sallenave. All the top managers above participate in the development of the competitive strategy besides playing vital roles in leading their departments. 
External Environment
Natural Environment
Uber affects just as much as it is affected by the natural environment. The union of concerned scientists indicates that Uber and Lyft rides bear 69% worse outcomes for the environment than the alternatives they replace (Sun, Ren, & Sun, 2020). That is because an overreliance on Uber and Lyft rides trigger more pollution than alternative rides. The impacts of Uber on the natural environment can be witnessed in how it affects the physical resources. Uber relies on physical resources such as roads that are degraded when overused. The other physical resources that the emergence of Uber has affected include storage, manufacturing resources, and factory facilities that have faced revitalizations due to the technological changes. The ride share industry also affects the climate. It is estimated that Uber and Lyft contribute to 5.5-12.5 tons of greenhouse gases in the atmosphere, which is a significant contribution to climate change/global warming (Chan & Humphreys, 2018). It is worth remarking that industry leaders such as Lyft and Uber, like most motor vehicle service platfor...
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