UBER SWOT & PESTLE Case Study Analysis - Globalization and Corporate Governance

Globalization and Corporate Governance – UBER Case Study Essay Writing Help

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Diploma In Strategic Management and Leadership Assignment Answers

In this current world everyone traveling fast to achieve their day-to-day needs. The latest technologies help the people to fulfil their needs in a fingertip by using many smart apps via mobile devices. Many companies have introduced various kind of the taxi sharing apps amongthe people to make them more convenient. In this case Uber is doing a major part by capturing more customers via their smart taxi sharing app.

Uber is an American technology company. Its services include ride-hailing, food delivery (Uber Eats and Postmates), package delivery, couriers, freight transportation, and, through a partnership with Lime, electric bicycle, and motorized scooter rental. The company is based in San Francisco and has operations in over 900 metropolitan areas worldwide. It is one of the largest firms in the gig economy. Uber is estimated to have over 93 million monthly active users worldwide. (Wikipedia, The Free Encyclopedia,2021)

In the 21st century globalization is a very visible phenomenon. Most noteworthy, it is continuously increasing. Above all, it is a great blessing to trade. This is because it brings a lot of economic and social benefits to it. Most noteworthy, there is a huge emphasis on technology development in globalization. Furthermore, there is also technology transfer due to Globalization. The technology would certainly benefit the common people. To find out how the globalization effects uber on operating nationally to face such criticism we need to do a PESTEL analysis

What is Globalization?

Globalization refers to integration between people, companies, and governments. Most noteworthy, this integration occurs on a global scale. Furthermore, it is the process of expanding the business all over the world. In Globalization, many businesses expand globally and assume an international image. Consequently, there is a requirement for huge investment to develop international companies.Toppr, Essays, (2021)

What is PESTEL Analysis?

A PESTEL analysis or PESTLE analysis is a framework or tool used to analyze and monitor the macro-environmental factors that may have a profound impact on an organization’s performance. This tool is especially useful when starting a new business or entering a foreign market. (Lars de Bruin, Business to You, 2016)

Why PESTLE is important for Uber?

Though UBER fulfil the needs of the busy individuals, still it had red cards on some countries. As a result of it UBER is banded in many countries in south Asia, Germany, UK, some cities of middle east countries, and some cities in united states too. This indicated why uber should go for a PESTLE analysis.

As per the PESTLE analysis while focusing on political factors Uber has faced controversy. In its initial development, Uber didn’t have clear regulations. It was difficult to pinpoint insurance lie in — if there is an accident, is the Uber driver at fault, or the company itself?

They have faced additional scrutiny worldwide; France filed charges based on advertising, the Netherlands ruled against Uber for their drivers not having Taxi licenses, cease and desist orders from Portland, with additional ban considerations in Asian countries.

Additionally, there were political discussions about minimum wage laws in the taxi industry, and whether Uber was abiding by these rules. The government requires commercial licenses as well, requiring Uber to provide that documentation.

When focusing on Economic factor Uber follows the concept of sharing economy and sharing intellectual resources and physical resources. The company has provided many job opportunities for drivers. Its popularity has increased over time. Uber has faced many bans and restriction in the beginning. The debate on Uber’s taxi is still going on. It’s because the brand has decreased the demand for conventional taxis. It has raised very importance whether the sharing economy is taking away jobs or it’s creating them.

( Ashan Ali Shaw, Pestel Analysis of Uber, 2021)

And when moving on to the social factors Customers of Uber enjoy it’s easy to access platform. Choosing an appointment and pick-up time is easy using the app on smartphones. It requires no communication rather than a few presses of a button.

As consumers enjoyed their rides, they posted about their experience on social media sites. Word of mouth spread awareness quickly. Still, because of the ease of use, customers choose Uber frequently. The more accessibility Uber provides, the more people will use its services rather than taxis or even public transportation.

Abhijeet Pratap, Notesmatic Pestel Analysis, (2018.)

When analyzing how uber spreads around the world rapidly in short time the main reason is technology. The APP makes the process of booking a taxi smarter and easier, but the negative impact of this is uber collects the customer data without their knowledge. And if a driver doesn’t have a proper network it puts rider into a trouble by demanding high fare by the driver so that uber team should find out a proper solution.

Companies must abide by the law or else they must pay fines and Uber being in the transportation industry, has great fines if not complied by the laws. Uber has been put on a platform where it is being charged on by the customary administrations about the laws applied to it. It is in legitimate trouble where a driver complained about low wages being paid to them which has put them in a fix. The human asset value is being challenged at Uber.

Uber’s effect on the environment is ever shifting. Many believe it increases traffic congestion and fuel usage. But studies have shown Uber hasn’t increased congestion.

People may use Uber instead of public transportation. Analysts will have to compare Uber fuel usage versus public transit versus own transportation for a thorough analysis of Uber’s environmental impact. As many different factors can contribute to the final number.(info@ Acasestudy.com 2007-2019.)

Legal compliance is an important challenge before the businesses and being unable to comply may result in large fines for businesses. The rise of Uber has come as a challenge for legal authorities, which are in a fix over whether the laws applying to traditional services must apply to it or not. Uber is facing legal problems not just related to taxes, but human resource issues too. (Abhijeet Pratap, Notesmatic Pestel Analysis, 2018)

A case was brought against two drivers of Uber related to the minimum wages last year. In 2015, California state regulators ruled that Uber must treat its drivers as employees and not as contractors. In France too, Uber was slapped with fines over illegal driving without proper permits.(Isaac and Natasha Singer, The New York Times, 2015.)

The company has been banned and restricted in many parts of the world. But its popularity continues to grow. Even when the prices rise, it still stays competitive against taxis. Consumers enjoy using the app to book rides and may even choose it over public transportation because of the experience. But how much or little the company hurts the environment requires more investigation. (Kiesha Fruf, Pestle Analysis,2017.)

Global Trade Agreements and trading blocs

The World Trade Organization (WTO) Agreements create an international trade legal framework for 164 economies around the world. These Agreements cover goods, services, intellectual property, standards, investment, and other issues that impact the flow of trade.

Below are some economic organizations that regulate and promote global trade

European union (EU)
International Monetary Fund (IMF)
North American Trade Agreement (NAFTA)
World Trade Organization (WTO)

Role of the international institutions

European Union (EU)

The European Union is a unified trade and monetary body of 27 member countries. It eliminates all border controls between members. The open border allows the free flow of goods and people. There may be police checks, based on police information and experience, that are not equivalent to border checks.

Any product manufactured in one EU country can be sold to any other member without tariffs or duties.3 Practitioners of most services, such as law, medicine, tourism, banking, and insurance, can operate a business in all member countries. The EU’s purpose is to be more competitive in the global marketplace. At the same time, it must balance the needs of its independent fiscal and political members. The euro is the common currency for the EU area. It is the second most held currency in the world, after the U.S. dollar.

Kimberly Amadeo, The Balance, The European Union, How It Works, & its history, (2021)

International Monetary Fund (IMF)

The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment and sustainable economic growth, and helps to reduce global poverty. The IMF is governed by and accountable to its 190 member countries.

IMF At a Glance, imf.org, (2021)

The World Trade Organization (WTO)

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to ensure that trade flows as smoothly, predictably, and freely as possible.

The two, Wto.org, (2021)

References

Wikipedia, the free encyclopedia (2021)

Available at: https://en.wikipedia.org/wiki/Uber (Accessed: 6^th October 2021).

Toppr, Essays (2021).

Available at: https://www.toppr.com/guides/essays/globalization-essay

(Accessed: 6^th October 2021).

Lars de Bruin, Business to You. (2016) Available at: https://www.business-to-you.com/scanning-the-environment-pestel-analysis/

(Accessed: 12^th October 2021).

Info@ Acasestudy.com.(2007-2019) Available at:https://acasestudy.com/pestle-analysis-of-uber(Accessed: 6^th October 2021).

Ashan Ali Shaw, Pestle Analysis of Uber. (2021)

Available at : https://swotandpestleanalysis.com/pestle-analysis-of-uber-technologies-inc/

(Accessed: 12^th October 2021).

Abhijeet Pratap, Notesmatic Pestel Analysis.(2018).

Available at: https://notesmatic.com/uber-pestle-analysis/

(Accessed: 8^th October 2021)

Isaac and Natasha Singer, The New York Times.(2015)

Available at :https://www.nytimes.com/2015/06/18/business/uber-contests-california-labor-ruling-that-says-drivers-should-be-employees.html(Accessed: 12^th October,2021)

Kiesha Fruf, Pestle Analysis. (2017)

Available at :https://pestleanalysis.com/pestle-analysis-uber/(Accessed: 12^th October 2021)