MGMT20144 Management and Business Context : Overview of UBER

Introduction

When a company starts a business, the management and the owner is quite positive of achieving success and achievements. Many business entities are basically aware of the general drawbacks but many of them try for paying attention to a number of critical issues. Critical issues are the chief issues which are considered very important and significant that may determine the survival as well as the success of the company. Here, this paper will reveal the critical factors which are aligned to business context of UBER Technologies Inc. which is a transportation network organisation of the US; it operates in around 570 different cities in the world. It has its headquarters in California, United States and in Francisco. It is a developed company and operates as the UBER car transportation apps. This essay will also show the various factors and issues that impact on the business context of the company.

Overview of UBER

To the riders, UBER is basically like a taxi service, on the other hand, to the drivers, it is the management for carrying them close to consumers. The application uses the two party’s telephone GPS design allowing both for knowing each other’s locations, reducing the inquiry about the term of the drivers, landing to the pickup location and displaying an estimated cost as well as the time of touching base to the location. The application can be operated on each of the three levels, Windows telephone, Android and to be specific iOS. In the perception of accessible riders in the area, UBER provides different classes of services. The prominence of UBER is only because of the extraordinary application, powerful advertising and even being an appealing decision to drivers.

Critical issues related to business context of UBER

Environmental factors in business can be defined as the total amount of internal as well as external factors which has its impact on the commerce. Internal and external factors of the commerce can impact each other, as well as, work comprised to worry a business (Kumar, & Mishra, 2014). It is quite significant for UBER for interacting as well as transacting with its business because the business environment has a direct connection with the business.

Environment executes various restrictions and limits on the company. UBER has an influence on the environmental factors. It is significant for the business to recognize the environment in which they are operating and functioning (Amirul, & Hands, 2016). The business environment is basically a composition of all external forces like social, legal, political, technological and economic factors. The largest external factors that impact the company’s revenue outcome are the prices of the products (Kumar, & Mishra, 2014). Moreover, increasing taxes, shortage of workers as well as legislative competition amongst countries and various other factors has its huge influence on the achievements of UBER.

In terms of an organisational structure of UBER Technologies Inc. shows the managerial association, flow of works as well as departmental arrangement into the context of the business (Laila Ansari, Weber, Hood, Otto, & Sawayda, 2015). It is the way on which the structures of the company is established, as well as also have a direct impact, on the productivity of the company. Organisational structures prominence on the outline of the sections and also of the job characters in the framework of the organisation in order to report associations. The management of UBER has enhanced its consideration on safety and health of its labour force and the customers (Bai, & Wang, 2012). The company also provides different services at a lower cost with ordinary autos such as UBER SUV, UBER LUX, and Toyota. Furthermore, UBER black has the highest cost and it gives incorporate rich autos like Porsche, BMW and many others.

Some of the things which are compulsory in the business context are the legal demands. Mostly, every business person or entities from various types of styles and various types of business are directed by the government laws. A large number of laws like Safety and Health, taxes and regulations, ratified contracts and noise and air act and various others, impact the business operations of UBER that defines the illegality, as well as setting codes of the business, to operate (Papatheodorou, 2006). The rules and regulations of the business help the car service industry to improve its operations. Following the security and safety regulations forced by the government, supports UBER for preventing fires, car accident and injuries which reduces the profit margins of the industry.

Risk Mitigation which is defined as the procedures to reduce adverse effects are about holding unique to business continuity and disaster recovery (Worapong Archarworarit, 2016). The UBER case creates a light on the high level of scrutiny on the labour model by giving exponential growth of app-based platforms. The risk is big as there is no flexibility to put forward someone else to fulfil the job (Gokmen, & Ozturk, 2012). UBER must provide careful consideration to the financial and risk sharing arrangements. But transportation companies like UBER, which a transportation service provider has less risk than the traditional taxi service providers as UBER has a business model because of its cost and revenue which scale up together. With lots of people requirement for daily taxi rides, the company brings up lot of drivers on the board.   

Contemporary issues in business

Contemporary issues in business can be addressed as any event, opinion, topic and idea on a given subject which are relevant in the current business situation or current day. It is available in every matter of interest (Reinsdorf, & Slaughter, 2009). Contemporary issues in marketing and management of UBER focus on the basics of legal requirements, innovations, technical advancements and globalisation.  

Legal issues in the current business situation in car service industry have been a matter of debate for political administrators. Legal concerns in the UBER has led to legal uncertainty as the issues like passengers safety, drivers safety, drivers remuneration, licence and intellectual property has serious legal problems. UBER in order to maximise its business, must keep knowledge about the local state and central legal laws mainly for the foreign countries in which it is operating and must create its strategy in accordance with country’s legal frame (Reinsdorf, & Slaughter, 2009). It is also important for UBEER to prepare a total biography of its drivers for the safety of the passengers.

Globalisation is anther contemporary issue which is influencing almost every business. Proff 2002 stated that globalisation has lowered the trade barriers of the economies and have made the movement of the economy smoother across the market (Reinsdorf, & Slaughter, 2009). Due to the influence of Globalisation, the fascination of the economies from the one single economy to anther has increased. With the influence of globalisation, the car service industry around the globe is changing. The car service was traditionally operated by the government or country’s own private enterprises but now as the global barriers have reduced, the business operations of private car service has reached to other countries (Buytaert, & Beven, 2009). One of the major effects from globalisation is the ups and downs of the fiscal terms but the main issue faced by UBER is the political and environmental issues. Passenger safety, passenger’s harassment by the drivers is one the most critical issue of UBER.

It is a well-known fact that travelling is always a crucial part in our daily life and nowadays it has become more important. Commuting and travelling requirements are increasing globally and more and more people are travelling across cities, states, countries for business, personal needs etc. Thus, the requirements for taxi’s and cabs have increased. The process is not simple as boking a taxi was a very tough process at past and their availability was always on question. Innovation in UBER has changed the traditional process if booking a taxi to a very large extent. Now, boking f a UBER cab can be done from a smart phone and can be done in almost every cities of the country in which it is operating (Steger, 2010). With this innovation, passengers and drivers don’t have to fall in negotiation of the prices. But there is also some issues relation with this innovation. With this conventional hiring system, there is always a concern about passenger’s safety and sometimes they have to wait for too long.   

There has been a tremendous change in the technology in almost every sector in the last 30 years and advancement in the technology is now accelerating the business. Due to the advancement, UBER has managed to change the method of booking or hiring a taxi and altered in a most convenient way (Wright, 2016). It is essential for UBER to adopt new developments in the technology for the betterment of the passengers. Implementation of the modern technology will assist UBER in recognising the consumer’s requirement and in properly operating the business procedures.

Conclusion

The study summarises that despite facing some serious issues in the business journey, UBER has managed to maintain its brand value in the market. It also outlined the numbers of environmental factors and contemporary issues which has their impact on the business context of UBER. The study also demonstrated that UBER has managed to change the method of booking or hiring a taxi and altered in a most convenient way due to advancement in technology. It is essential for UBER to follow the security and safety regulations forced by the country’s government in order to support it from car accident and passenger injuries, driver issues and to run its operations.

References

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