The document discusses Uber's plan to add a parcel delivery division. It analyzes this new division through a balanced scorecard, considering shareholder value, customer value, internal operations, and employee growth and learning. The division aims to maximize profits and customer satisfaction by building on Uber's brand and infrastructure. A SWOTT analysis identifies opportunities like Uber's brand recognition, but also threats such as regulations and economic instability. The strategic plan must focus on meeting customer needs while navigating challenges.
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Running head STRATEGIC PLANNING FOR BUSINESS1STRATEGIC PLAN.docx
1. Running head: STRATEGIC PLANNING FOR BUSINESS
1
STRATEGIC PLANNING FOR BUSINESS
4
Strategic Planning for Business
Deon Davis
Bus/475
Richard Taylor
December 11, 2017
Strategic Planning for Business
The division selected for this particular assignment is the parcel
delivery unit that is to be added to the highly successful Uber
business. This division has been pitted to succeed owing to its
alignment to the company’s mission and vision as well as the
fact that it will be exploiting a market niche. Using the global
reputation that Uber has gained thus far, this division stands a
chance of becoming the next new and great product from Uber
to penetrate the market. Its success can be spelt out through a
balanced scorecard to show the areas where the company will
gain competitive advantage over the competition (Coe & Letza,
2014). There are four main factors within the balanced
scorecard worth looking into for the sake of the division; these
are shareholder value, customer value, process or internal
operations and learning and growth of the employees.
Shareholder Value
For this division to live up to its expectations it has to deliver
the greatest value for the shareholder. This can only be achieved
if profitability is maximized. The distribution channels for the
service have already being laid out. Therefore, to minimize
costs, the same apps for Uber (passenger and driver apps)
2. should be used by adding a section for sending parcels rather
than developing an entirely new app. This will help the
company to not only maintain its loyal customer base through
vertical integration but also target an entirely new market. The
parcel delivery market is dominated by companies such as DHL.
However, the advantage that Uber’s parcel delivery service will
bring is flexibility. With Uber, parcels can be delivered using
easily through existing channels. Client’s will not need to
register with another company; all they need is to order a cab
and place the parcel for transportation. Uber will eliminate the
rigorous information provision by parcel senders. So long as the
client has an Uber account and the app, sending parcels have
never been easier. This is bound to increase the customer base
further and thus the margins will improve (Cramer & Krueger,
2016). Thus, with this convenience, the division will improve
the revenue of the company and maximize the shareholder’s
value. Customer Value
The existing customer value measures that Uber has in place
within its taxi business will be redesigned and used for the
delivery service. Specifically, the first priority for the division
will be to deliver the product to its destination in time and in
one piece. Thus, drivers will be under strict instructions to not
tamper with the parcel. If cases of parcel tampering are
reported, such drivers will face an indefinite sack from the
company. This will serve to protect the security of the parcels
the same way clients are assured of their security as they travel
with Uber. Customer turnover rate will also be reduced using
division. Not many customers will switch to the competition
mainly because they will stick around to enjoy the full-service
package offered by Uber. As well, this innovation will create
the illusion that the company will be having such new creative
services in future. This will be enough to keep hold of the
existing customer base and attract more customers. If anything,
customers will switch from other companies to Uber. This way,
customer value will be created and maintained at the same time
3. (Rogers, 2015). The company will have achieved success two-
fold. Process or Internal Operations
The company’s internal operations will have to change. This
change will mainly be due to the increase in competitive
advantage. The division will rely a lot on the existing core
process of the firm to achieve success. This reliance on the core
process within the firm means that add pressure will be
experienced within the management of the internal processes of
the firm. To successfully manage the pressure, it will be
essential to anticipate the impact of change. In other words, it
will be crucial for the firm to structure the change management
system to cater for the anticipated changes. This may involve
hiring more workers to cater for the increased demand or even
dedicating more resources towards the maintenance of the app
since more clients will be expected to use the app then before.
All these are possible solutions in a bid to prevent a scenario
where the firm’s internal operations are disrupted or diminished
in terms of efficiency. Also, the same performance metric used
for the existing services should be applied for this division to
ensure that quality is not compromised whatsoever (Cramer &
Krueger, 2016). All these steps will help in improving the
company from the inside laying a good foundation for the
expected changes. Learning and Growth for the Employees
The employees at Uber form the most crucial of assets. This is
because the company prides itself at having one of the best
customer-worker relations. It is this core competence that has
helped the firm capitalize and leverage its reputation abroad. It
is, therefore, in order for the company to continually improve
and develop its employees to maintain the company’s values
while remaining creative. The employees include the drivers.
They are regular training to ensure that the way they handle the
clients is not only appropriate but up to current standards. The
same approach should be taken by the division. The workers in
the division must follow the same professional conduct that is
4. akin and unique to Uber. The parcel delivering drivers will also
need to be trained so that their conduct is aligned to the
company’s standards. This is crucial because if the division
receives complaints regarding quality of the services offered,
the backlash will trickle down to the parent company and cause
irreparable damage. To avoid this, only drivers with a couple of
years work at Uber should be involved in the parcel delivery
service to ensure that they have undergone at least on training
session (Rogers, 2015). Further, all delivery drivers should be
thoroughly checked to prevent hiring thieves or other malicious
individuals as delivery drivers. Conclusion
The division selected for this particular assignment was the
parcel delivery unit that is to be added to the highly successful
Uber business. There are four main factors within the balanced
scorecard worth looking into for the sake of the division; these
are shareholder value, customer value, process or internal
operations and learning and growth of the employees. For this
division to live up to its expectations it has to deliver the
greatest value for the shareholder. This can only be achieved if
profitability is maximized. The existing customer value
measures that Uber has in place within its taxi business will be
redesigned and used for the delivery service. Specifically, the
first priority for the division will be to deliver the product to its
destination in time and in one piece.
References
Coe, N., & Letza, S. (2014). Two decades of the balanced
scorecard: A review of developments. The Poznan University of
Economics Review, 14(1), 63.
Cramer, J., & Krueger, A. B. (2016). Disruptive change in the
taxi business: The case of Uber. The American Economic
Review, 106(5), 177-182.
Rogers, B. (2015). The social costs of Uber. U. Chi. L. Rev.
Dialogue, 82, 85.
5. Running Head: UBER TECHNOLOGY
4
Strategic Plan Part II: SWOTT Analysis
Deon Davis
Bus/475
Richard Taylor
December 4, 2017
SWOTT Analysis
Out of all the mentioned trends, the following seven are most
likely to influence Uber’s operations with the introduction of its
new product
1. Legal and regulatory forces: the legal and regulatory force
greatly influences a business operations as well as success
realized. The government imposes taxes as well as several other
regulatory measures with the aim of cushioning customers from
exploitation as well as promoting economic growth. It is
important for Uber to understand the implications of regulatory
tax measures in different potential areas of operations to its
success. Understanding the two will help the business adjust its
practices to adapt to the business environment as well as
account for the regional economic analysis. Tax codes vary
from nation to nation and can either support or restrict some
business operations. Increase in tax will affect this new product
negatively while the opposite applies. Taxes may come in the
form of fiscal balance tax, gross receipt tax, corporate income
tax, or individual tax, it is important to understand all these for
the Uber to run its operations profitably and smoothly.
2. Technological innovation: rapid technological innovation
calls for quick reaction of businesses to remain relevant in the
6. industry. Keeping tabs of new trends and technological
innovation that competitors will offer is a winning point for
Uber’s parcel delivery service. Therefore, business practices
needs to integrate modern technology based on its goals and
objectives. Being an app, security from data breaching as well
as cyber-crime possibilities should be a priority for the
company. If information security is not guaranteed, parcel
delivery is not likely to realize its goals.
3. Economic Factors: economic factors highly dictate a business
strategies and operational activities. To begin with, customer’s
optimism in this new service will highly dictate its success in
the industry. Their willingness to spend money on the new
product will determine how receptive it will be in the market.
Market demand and supply of technologically advanced parcel
delivery system and the bargaining power of the consumers are
some of the economic factors that will dictate the success of
this new product. The inflation rate as well as inflation
perspective also affects the success of Uber’s parcel delivery
innovative idea in the market. If the inflation rates are high,
consumers will spend less on the product and vice-versa.
4. Goals: the delivery parcel aims at overcoming the challenges
that exists with traditional parcel delivery system. Among these
are quality concerns, security and duration of delivery. Uber’s
Parcel delivery aims at securing the process of parcel delivery,
making timely deliver at an affordable price. These goals will
dictate every strategy the company invests in as they are the
backbones of the entire innovation.
5. Intellectual properties: these are highlights that Uber needs to
be aware of to guarantee protection of its innovation,
maximization of its competitive position and avoid infringing
the IP rights of other businesses as well as people (Gluck,
Kaufman, Walleck, McLeod, and Stuckey, 2016). IP falls into
two main categories: registered and unregistered rights. The
registered rights are monopoly rights that stop other businesses
form using Uber’s parcel delivery idea without their permission.
They include: registered designs, trademarks and patents. The
7. unregistered rights come about automatically and guarantee
protection using the right as well as against copying. They
include: confidential information, unregistered designs,
unregistered trademarks and copy rights.
6. Leadership: the type of leadership exercised at Uber will
dictate how the employees will perform, interact with the
customers and the organization’s culture. With a new innovation
that is new in the market, the management is important in
guaranteeing its successful launch and dominance in the
industry. Leadership creates a sense of unity and direction in an
organization, therefore, Uber should utilize this factor and
implement leadership styles that will see the employees perform
exceptionally and realize a successful breakthrough in the
market. Planning, leading, organizing and controlling
operational activities is crucial for the success of this new
product.
7. Trends: technological innovation has seen all sectors of the
business industry go digital; this is an aspect that Uber intends
to introduce in the parcel delivery industry (Trevino and
Nelson, 2014). Being a trend setter is important bust it has to be
backed with the other six factors that affects product launch
success. Secondly, trends tend to change with an introduction of
a new concept or development of a new demand. Uber needs to
have a research team that addresses all these aspect of their new
innovation for it to remain relevant and compete effectively in
the parcel delivery industry.
Critique how well the organization adapts to change.
Having successfully ventured in the taxi industry at a global
level, Uber is exposed to what it takes to meet consumers’
needs and compete in international markets. When it comes to
the legal and regulatory forces, the same measures it has in
place with all its other services will be applicable in the case of
parcel delivery. Years of experience is an added advantage for
Uber as it is familiar with regulations of different countries and
how to maneuver its operations to realize profits even when
these factors fail to favor its operational and financial success.
8. Secondly, the move to embrace in this venture is a response to
an emerging trend and application of technological innovation
(Gluck, Kaufman, Walleck, McLeod, and Stuckey, 2016). The
taxi business works based on an online platform, the same will
be applicable for the parcel, as stated before, experience and
compatibility in operational activities will be a winning point
for the company. Economic factors call for proper planning and
forecasting of a business environment. Some predictions may
not be accurate primarily why business needs to have alternative
options in the face of an economic crisis. Uber may be ready to
handle economic factors that affect the new product but being a
new project, it may need to invest into more research on the
same. Goals may be subject to change with changes in trends
and technological innovations. Based on past success in its
other products Uber is ready to launch this new product and
may use its brand and consumer base to guarantee successful
penetration in the market.
Analyze and explain the supply chain of the new division of the
existing business.
Customers’ demand for a better last mile services which keep
them in control of where, when and how their parcels are
delivered. Secondly, they demand for a broaden delivery
location that guarantee 24*7 security as well as anonymous
delivery alternatives and finally delivery timing (Wieland and
Wallenburg, 2013). A supply Chain Management thus needs to
support all these demand to guarantee maximized customer
value as well as a sustainable competitive edge. A supply chain
that covers and coordinates: information system, logistics and
sourcing production need to be embraced for the case of parcel
delivery. Every parcel that reaches the end user should therefore
represent the cumulative effort of Uber in making it a success.
Uber should embrace a supply chain system that linked
information and physical flow to guarantee customer
satisfaction. Physical flows include storage of the parcels and
their movement; this should be the most visible piece of the
9. supply chain to both the management and the customer.
Information plan on the other hand should guarantee a
coordination and control of day to day flow of the parcels down
the supply chain.
Discuss the primary internal organizational considerations for
the development of a strategic plan
A strategic plan should have the interest and desires of the
customers at the center of any operations (Hitt, Keats, and
DeMarie, 2014). This should be based on the greatest
weaknesses of the traditional methods of parcel delivery which
Uber intends to overcome. These include: timely delivery,
delivery locations and control. For this new project to realize
success it must meet the needs of the consumers therefore, the
three should form the basis of any considerations the
management will come up with.
Identify the major issues and/or opportunities the company
faces based on your analysis.
Keeping up with upcoming trends and demands may attract
additional cost. Secondly, government regulations and rules
may limit Uber from executing some of its strategic goals.
Economic factors such as inflation, consumer preference and
demand may affect success. Being a fast mover, having a
recognized and renowned brand name, Uber stands to realize
success with this new product. Finally, knowledge of
international markets stands to be an advantageous factor for
the introduction of parcel delivery services.
Reference
Gokhan, N and Needy, N (2015). "PESTLE Analysis"
Engineering Management Journal 22 (4):
20–30.
Gluck, F. W., Kaufman, S. P., Walleck, S., McLeod, K., and
Stuckey, J. (2016). Thinking stragegically. Retrieved from
McKinsey & Company:
10. Hitt, M. A., Keats, B. W., and DeMarie, S. M. (2014).
“Navigating in the new competitive
landscape: Building strategic flexibility and competitive
advantage in the 21st century.”
Academy of Management Executive, 12(4), pp. 22-42.
Trevino, k and Nelson, A. (2014) “Managing Business Ethics:
Straight Talk about how to do it
Right” 6TH Ed. NJ, USA: John Wiley AND Sons Inc.
Wieland, A. and Wallenburg, C (2013) “The influence of
relational competencies on supply
chain resilience: a relational view” International Journal of
Physical Distribution &
Logistics Management. Vol. 43, No. 4, pp. 300-320.
STREGTH
WEAKNESS
OPPORTUNITY
THREAT
TREND
EXTRENAL FORCES
Industry Changes
Low fixed investment
Creates tech oriented consumers
Rising disposal income
Customer retention
Digital platforms
Global
Recognized brand
Barriers of entry
Tap growing market
Revolt from an organized market
Tapping new markets
Legal and regulatory
11. Low fixed investment
High cost of operation
Exploit new market
Unclear government regulations
Tax rates fluctuations
Economic
Dynamic pricing strategy
Rivalry concerns
Increased valuation
Customer retention
Inflation rates
Technological innovation
Emphasis of customer satisfaction
Easily imitated
Increased internet penetration
Increased competition
Security guarantee
Social
High standard of services
Ethical concerns
Meeting a growing demand
Customer retention
Customer satisfactions
Environmental
Well-recognized brand
Controversies on environmental conservation
Tapping growing market
Local authorities problems
Environmental conversation
Competitive analysis
Unlimited fleet of vehicles
Rivalry
Rising disposable income
Brand switching
Product differentiation
INTERNAL FORCES
12. Strategy
Timely delivery
High cost of operation
Tapping growing market
May be imitated
Product differentiation
Structures
Smooth operations
Are bound to fail
May be upgraded
Customer retention
Employee and customer centered
Processes and systems
Guarantees coordination
Can fail
May be updated and upgraded
Vulnerable to viruses
Need to be automated
Resources
Less cost of production
Are expensive
Price differentiation with different suppliers
May be depleted
outsourcing
Goals
Sense of guidance
Are limited to a specific concept
May be subject to change with new demands
Are imitable
Need to address consumer needs and wants
Strategic capabilities
Brand recognition
May be ineffective
May be changed with new trends
Readily imitable
Incorporate technological innovation
13. Culture
Guide the employees
May be outdated
Can be changed with new trends
Can be imitated
Need to promote employee satisfaction
Technologies
Innovations
Digital platforms
Creates tech oriented consumers
Increased internet penetration
Increased competition
Security guarantee
Intellectual property
No imitation
New innovations
Legal protection from imitation
Law suites
originality
Leadership
Unifying factor
Poor leadership
Motivated and loyal employees
Dissatisfied employees
Employee involvement
Strategic Plan Part I: Proposal of a New Division
Uber Technology
14. Deon Davis
BUS/475
Richard Taylor
November 27, 2017
Introduction
Uber is primarily a service that offers similar products that are
synonymous with those provided by taxis, but its products are
differentiated by the integration of modern technology in which
there is the use of the mobile app to link both the customers and
the drivers. The Uber application is compatible Android, I
phones and windows phone which helps it in running its
operations excellently and smoothly. It uses cashless technology
when it comes to handling issues related to service payments. In
the current market set up, it is clear that Uber offers low-cost
services as compared to its rivals in the market and also it has
the best-experienced drivers who help it to run the business.
The rise of internet and outsourcing services has motivated
companies willing to come up with creative ways to serve
customers in more efficient ways of improving the business
strategies of the firm. Stone, B. (2017). The upstarts:
Propose a new product or service for the new company division.
The division should be customer-focused with an innovative
mission statement. Ensure you are differentiating your product
or service.
In this paper, we are going to introduce a new product which is
an app that deals with parcels delivery. The Uber Company has
only two apps that help it to carry its day to day operations
15. which are the app for drivers and the app for passengers. For
this assignment, I would like to introduce a new product which
is an app for delivery of parcels. Uber app is a product that
would see it encounter stiff competition from rival to become
the best taxi and parcel delivery company in the market. It
would be in line with its innovative mission to expand its
primary operations to cater for all sections of the public
transport and parcel delivery which is still an essential market
gap that can be explored. The parcel apps would see the
company grow into the higher level with enhanced local and
international parcel delivery at a tap of a phone button. The
service charge for the parcels would be cashless as it would take
into account online payment methods just as those opting for
the other two apps operated by the company. (Mowery, N.,
Poling, S. R., & Reavis, P. (1994). Customer focused quality)
Describe how the division addresses customer needs and
achieves competitive advantage.
This app is essential in the addressing customer needs regarding
fast parcel delivery both locally and international. There have
been a lot of issues that have been related to parcel such as their
high cost of parcel delivery both locally and globally, others
refer to losing essential products in the process of trying to send
documents and other relevant products to friends, workmates
and family members throughout. By introducing such an app, it
would help to curb and downplay this disadvantage and improve
more customer delivery service. An integrated parcel
management would offer high- end parcel management services
which would pose a competitive advantage regarding the better
distribution of parcel across the globe; it would also enhance
complete customer solutions through integration with other
companies such as Google and Microsoft. A competitive
advantage would also be improved through low pricing strategy
for these services, and finally, it would enhance faster delivery
across borders as compared to the rival firm in the same market.
This product would also help to improve its operational base
and make it employ more workers to run its operations.
16. Create a vision and a business model for this new division that
demonstrates your decision on what you want your business to
become in the future.
A vision is essential for business; we are going to explore the
concept of introducing a parcel app to in the business world
which would be one of its kind ever in the market. In today
world, the world of apps development has been enamored, and it
is said to have affected all sectors of the economy in one way or
another. By introducing this app for Uber company would be
very significant as a growth strategy. Within the next five years
of its introduction, I think it would reap a lot concerning
revenues and as a core competency for the firm. The accrued
benefit that the business would enjoy is on a large market pool
for the product users and also low competition method for
individuals who rely on the traditional way for parcel delivery.
Developing a business model is so essential for any successful
operations of the business in any part of the continent. For this
case, we are going to look at the issues related to the
identification of sources of revenues, the intended customer
base, products and details of financing. On the subject of
revenues, the apps would facilitate cashless payment for the
users either the local payment means or international payment
means such as PayPal. The intended customers would be those
individuals who have a low satisfaction level concerning the
traditional methods of parcel delivery, and finally, the financing
for the development of this app would mainly be realized from
the private saving and also partnership with interested firms
such as Visa and MasterCard Company. (National Mission and
Justice Education Programme. (1981)
Define your guiding principles and values for your division in
the context of culture, social responsibility, and ethics
Guiding principles are essential in product development
process. In this case, investors are the in a position to develop
a product constitution which is significant in building a product
image and reputation in the market. The essence for establishing
a structure for a product is to reduce frictions and chaos that
17. may arise out of a product or a service use regarding cultural,
social and ethical aspects. Defining the guiding principles
requires critical and strategic thinking for it to be effective.
For this case study the guiding principles would be;
· The primary audience for this products would be the online
community that uses different social platforms
· The performance indicators would mainly be evaluated on the
reaction of both social media users and the already Uber
customers.
· The enabling factor would revolve around the issue of a large
number of online communities that are connected with internet
connectivity and had access to smartphones.
· The scorecard for this app would be evaluated quarterly to
determine its performance in the market
· The platform for this app would be on Android phones, I
phones, and windows phone to reach a lot of individual with
smartphones.
· Finally, for the app to perform exemplary in the market Uber
company would have to focus its energies on acquiring workers
with necessary skills required.
Explain how the vision, mission, and value of the new division
align with the company’s mission and vision.
Although new products and services require a lot of resources,
they are essential in shaping the company growth, mission, and
vision statements. Product development is the back-born for any
company and society as the enhance wealth creation and
expansion of the business operations. Some of the significances
that accrue with product development are; first, it creates value
for customers. The new and increasing profit is what keeps the
company growing, in the case the company does not have any
invention in the market, research says that the company is likely
to wilt and may eventually cease to exist.
Secondly, new product development is likely to have an impact
on the improvement of the social life. New products besides
giving customer gratification, the revenues generated by the
company may foster them to undertake corporate social
18. responsibility (CSR). The vision and mission of the
organization enhance the competitive advanced which may make
it have an easy time over their competitors. Mureta, C. (2012).
Importance of vision, mission, and values guide the division’s
strategic direction.
Visions, missions, and values play a crucial role in shaping a
company direction. Without the proper foundation of strong
values which is outlined in the vision and undertaken by the
mission, an organization cannot become successful. A company
that does not develop and values in developing a strategy cannot
be able to identify or be able to distinguish itself to both the
customers and to the employees. This section seeks to discuss
the importance of developing a vision, mission and values o a
business.
The mission statement is an essential part as it seeks to define
the business concerning the products, services and its target
customers, a mission statement is necessary for differentiating
itself from the competitors. Concerning the issue of a vision
statement for describing how the future of the company looks
like and if the company will be in a position to achieve its
mission. Finally, the guiding principles serve as a platform in
which a group can nature desired behaviors in an organization,
the building blocks for of values relate to honesty, integrity and
professional practice that is combined to develop the mission
statement of the company.
References
Dessaint, K. (2013). Behind the Wheel: From Uber/Lyft to Taxi.
Oakland: Kelly Dessaint.
Schneider, H. (2017). Uber: Innovation in Society. Cham:
Palgrave Macmillan.
Schneider, H. (2017). Creative destruction and the sharing
economy: Uber as disruptive innovation.
19. Strategic Planning Outline
BUS/475 Version 7
1
University of Phoenix Material
Strategic Planning Outline
I. Title Page
II. Table of Contents
III. Executive Summary
IV. Strategic Plan Part 1: New Business Division of an Existing
Company; Vision, Mission, and Value Proposition
V. Strategic Plan Part 2: SWOTT Analysis – Internal and
External Environmental Analysis; Primary Internal
Considerations for the Development of a Strategic Plan.
VI. Strategic Plan Part 3: Assumptions, Risk and Change
Management Plan; Summary of Strategic Objectives; Corporate
Social Responsibility: Balanced Score Card and its impact on
stakeholders; the Communication Plan
VII. Strategies and Tactics Section
VIII. Conclusion
IX. Reference Page