Introduction
The assignment for the subject of organisation and strategy is looking at a global company in the context of being able to critically evaluate the organisational and cultural environment, whilst identifying the key capabilities and resources of the company; using relevant strategic tools the evaluation of the competitive environment of the organisation; using evidence from the research on the company, explore the extent to which the organisational purpose is mandated by stakeholders and governed by ethical business decisions; and finally based on the evidence of the research and analysis, critically discuss any disruptive trends that you can predict in the industry and evaluating whether or not this has an impact on its organisational purpose. ?On a snowy Paris evening in 2008, Travis Kalanick and Garrett Camp had trouble hailing a cab. So they came up with a simple idea- tap a button, get a ride? (Uber, n.d.). The global company that will be evaluated throughout the assignment is Uber, a company that operates around the world, offering taxi services to consumers through the use of a downloadable app, as well as offering a payment aid in which the payment is taken through the app via your card.
Critically evaluate the organisational and cultural environment of the company selected and identify key capabilities and resources.
As can be understood in the previous quote, there is direct in the organisational and cultural environment of Uber, this being that the creators created the idea from their own experiences, this then highlights that there is an interest in the environment of the industry that Uber was created. ?The organisational culture ? ?the way we do things around here? ? influences what employees can do and how they view, define, analyse and resolve problems and issues? (Robbins, Bergman, Stagg and Coulter, 2014, p. 94). The organisational and cultural environment of Uber somewhat follows in with the way in which the company was developed, this being a simplistic idea that aided an individual?s journey from place to place. As can be understood in Appendix 1, there is an indication of how the organisational culture interacts within the environment of the company in its entirety. An organisational and cultural environment can help in the way that the employees are also helping to run the business too, they are in fact the ones who are helping the operation of Uber, for the purpose of this assignment.
Appendix 1: Organisational Culture. (Robbins, Bergman, Stagg and Coulter, 2014, p. 95).
The key capabilities and resources that are evident in Uber is their ability to adapt to today?s modern world with relation to the way in which payments can be made. The key capability that Uber holds is the factors that they have addressed one of the major issues within transport by taxi; this is with relation to the payment option concerned. Although more and more taxis are accepting card payments as an option in the vehicle, it is often on booking that you have to request a card payment facility in which you still have to physically pay the driver by card. Uber is progressing this to the next level whereby the person travelling by Uber taxi simply downloads the app, inputs their information, such as card information and can then on book a taxi, the initial information is only inputted once on the download of the app. ?For the women and men who drive with Uber, our app represents a flexible new way to earn money. For cities, we help strengthen local economies, improve access to transportation and make streets safer?(Uber, n.d.). Uber?s capabilities and resources are that they are creating an effortless and seamless transaction from pick up to drop off, whilst using the modern day resources readily available to both the driver and also to the passenger.
Using relevant strategic tools and techniques, evaluate the competitive environment of the organisation.
With the aid of Porter?s five forces model, the evaluation of the competitive environment of the organisation will be looked into, this being in the industry of those offering taxi services. ?Michael E Porter?s well- known framework, known as the five forces model?(1) the risk of entry by potential competitors, (2)the intensity of rivalry among established companies within an industry, (3) the bargaining power of buyers, (4) the bargaining power of suppliers, and (5) the closeness of substitutes to an industry?s products? (Hill and Jones, 2007, p. 45). The five forces are as summarised within the quote, this looks into the possible competitors into the industry as well as the suppliers and the possible bargaining power that they may have. In terms of the risk of entry of potential competitors into the industry, there is definitely concern into this risk, although this is something that has not stopped the likes of Uber from entering into the industry themselves, so this could be interpreted as friendly competition, whilst Uber are maintaining a competitive advantage through their development of the app booking and payment system.
The intensity of the rivalry is indicated through the development and adaptation between taxi firms today who are now inviting passengers to use card payments in their taxis, although this is something that is still rare and on occasion does need to be ordered specifically on booking. The bargaining power of buyers is in terms of the passengers themselves and with this Uber is often known to be cheaper than the leading competitor. ?The taxi- hailing app Uber has expanded rapidly since its launch and gained popularity with users as fares are generally cheaper than with traditional taxis? (BBC, 2015). In terms of the bargaining power of the suppliers, this is in the app itself, as well as the facilities in which passengers can access the app, this is something relatively new to the taxi industry especially, and this therefore is something that the suppliers could create a high price for. In terms of the substitutes on offer, there is development occurring within existing taxi firms, although this is something that is in operation alongside traditional payment methods, showcasing that Uber is one of the only to be operating solely through an app.
Using evidence from your research on the company, explore the extent to which its organisational purpose is mandated by stakeholders and governed by ethical business decisions.
The extent to which the organisational purpose is mandated by stakeholders and governed by ethical business decisions is explored in this section. In terms of the organisational purpose being mandated by stakeholders, this is not the case within Uber, or at least is not evident within the research collected within the assignment, this being that there is very much an equality within those who are working within Uber. ?Co- design would be helpful in bringing long- lasting success to Uber by involving stakeholders Uber has largely marginalised in its current growth? (DeFillippi, Rieple and Wikstrom, 2016, p. 51). As this quote is making reference to, there is an involvement concerning stakeholders, this being to work with the stakeholders, but not necessarily from an instruction of those for the Uber company.
In terms of being governed by ethical business decisions, Uber appears to be working with their people as opposed to instructing them, although there will of course be a structure in the company.?Across borders, cultures and languages, we?re proud to connect people who need a reliable ride with people looking to earn money driving their car. Your journeys inspire us? (Uber, n.d.). As far as the ethical business decisions goes, there is evidence of this in the form of working with the individuals who are helping the operation of the business, but this again is not governed in the company. Overall the extent of the organisational purpose being mandated by stakeholders and governed by ethical business decisions, there is attention to the lax approach that works for Uber, this being in their ability to create an easy approach to transport.
Based on evidence from your research and analysis, critically discuss any disruptive trends that you can predict in the industry in which the organisation operates. Does this have an impact on its organisational purpose?
Based on the evidence from the previous research and analysis, there are factors concerning disruptive trends for the future of the industry, this being in the introduction of driverless cars, something which would be able to reduce on overall cost to the customer and reflecting in no need for drivers. This trend, although still new is something that could cause disruption in the industry and is becoming something that is coming closer to possibility for both taxi firms and individuals alike. This could also result in individuals not having a need for taxi firms as much as they need today, if driverless cars are made affordable as well as practical, then individuals may then opt to essentially transport themselves to and from places, depending on the scenario and the place in which they are visiting. However, due to the pace in which Uber entered the market and the rate in which they can adapt to newness in and surrounding the industry, they have already taken on this trend. ?Uber has launched a ground breaking driverless car service, jumping ahead of US car giants and Silicon Valley rivals with technology that could revolutionise transportation? ((France-Presse Agence, 2016). As can be understood Uber are a fast moving innovative company in which sees trends as more of an opportunity to move forward as opposed to a hindrance.
This then goes on to understand that disruptive trends do not have impact on Uber?s organisational purpose as they are very much known for their evolutionary and innovative style, therefore trends are simply opportunities in which they can essentially compete with themselves, as much as their competition. ?It operates in 57 countries, but Uber?s ambitions go beyond providing taxis ? it has also trialled courier and fast food deliver services? (BBC, 2015). Furthermore to disruptive trends, Uber have also looked into various other areas in which they can develop as part of the company. As can be understood within the quote is that Uber have looked at Courier service and also fast food delivery services, this is showcasing that Uber?s organisational purpose is very much in keeping up to date with the trends of now and also for the future. They are not afraid to change, build and adapt to the needs of the future, they are a modern company in their ability to create what the consumer wants as well as what will keep the consumer coming back. To be able to compete within the industry there needs to be some element of change, Uber seem to be very keen to do this, in turn making this their organisational purpose in becoming a leader in technology as well as within the industry as a whole.
Conclusion
In conclusion to the assignment of organisation and strategy, there has been an evaluation of the taxi firm Uber, with relation to the resources they have, the way in which they are mandated and also looking at the potential disruptive trends and what it could result in for the organisational purpose of Uber. Overall throughout the assignment, there has been attention to the factors that Uber has very much become a leader in terms of the pace in which they move to modernise and make easier for the customer, the service that they are able to offer, this being as a result of their resources, whilst their key capabilities are within their ability to change for the better and to that of the consumer. ?Uber has launched a ground breaking driverless car service, jumping ahead of US car giants and Silicon Valley rivals with technology that could revolutionise transportation? (Telegraph, 2016). The company is very much working together in terms of building the company and being beneficial to those working within and also to the passengers of the company. In conclusion to the assignment and with attention to the disruptive trends, there is evidence within the research that those disruptive trends that have been predicted would not have an impact on the organisational purpose of Uber due to their nature as a company being in moving forward for the consumer and the efforts they have already made to benefit from the current environment. Uber are certainly a strong competitor in terms of their innovation towards the current economies and also towards the passengers and what they would look for in a taxi firm for the future, they are seeing any trends as an opportunity to improve, which is helping them to continue and also maintains their organisational purpose of being new and innovative.
References
Ahlstrom, D. & Bruton, G.D. (2009). International Management: Strategy and Culture in the Emerging World. Cengage Learning.
BBC, (2015). All You Need to Know About Uber. BBC News. Accessed online on 01/12/2016 using http://www.bbc.co.uk/news/world-us-canada-33281422.
DeFillippi, R., Rieple, A. & Wikstrom, P. 2016. International Perspectives on Business Innovation and Disruption in Design. Edward Elgar Publishing.
France-Presse Agence (2016) ‘Watch: Uber launches driverless car service’.?The Telegraph?[online] 14 September. available from
Hill, C. & Jones, G. (2007). Strategic Management: An Integrated Approach. Cengage Learning.
Hill, C. & Jones, G. (2009). Strategic Management Theory: An Integrated Approach. Cengage Learning.
Robbins, S.P., Bergman, R., Stagg, I. & Coulter, M. (2014). Management: Seventh Edition. Pearson Australia.
Schein, E.H. (2016). Organisational Culture and Leadership. John Wiley & Sons.
Uber (n.d.) available from
Valentine, S.J., Richards, R. & Ovenell- Carter, B. (2016). Blending Leadership: Six Simple Beliefs for Leading Online and Off. John Wiley & Sons.
Appendices
Appendix 1: Organisational Culture. (Robbins, Bergman, Stagg and Coulter, 2014, p. 95).
