Running Head: UBER TECHNOLOGY 2 Student Name: Professor Name: Date: 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 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 off ...

1. Running Head: UBER TECHNOLOGY 2
Student Name:
Professor Name:
Date:
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

2. 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
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

3. 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.
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

4. 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
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

5. 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
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

6. 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.
FIN 310 Fall 2017 – Capital Budgeting Assignment
Th is a s s ig n men t is du e o n Bla ckbo a rd no la ter th a n
11:59 p m o n Mo n da y, D ecemb er 4. It will n o t
b e a ccep ted la te o r via e - ma il.
This assignment must be done in MS-Excel using the formulas
and functions in Excel. This means you will
NOT receive full credit if you work the problem on paper and
then type the numbers into the spreadsheet
cells or work portions of the assignment on your calculator.
Make sure you have a separate worksheet
within your ONE Excel file for each problem and that you label
the worksheet tabs. I will NOT accept
work done in two Excel files. Your recommendations need to be
included in a text box, not typed into a
cell.
1. Your company is considering a new product. The marketing
department has estimated that the
new line will sell four million units in year one at a price of $15
per unit. Unit sales are expected to
increase by 3% per year until the product is retired in 8 years.
The variable cost per unit is $10 in
year one. The price is expected to increase by 2% per year. If

7. you introduce the new product you
will sell 1.2 million fewer units per year of an existing product
for the first 2 years. The price of the
existing product is $8 per unit and the variable cost per unit of
the existing product is $4. The price
and cost are not expected to change over the next 2 years. The
existing line will be discontinued in
2 years regardless of whether we introduce the new product.
Fixed costs are expected to be $10
million in year one and increase by 1% per year due to inflation.
You can manufacture the product
in a factory that is currently sitting idle. The factory originally
cost $10 million and is fully
depreciated. You could sell the factory for $15 million today,
before taxes. If you use the factory
now, you estimate that you could sell it in 8 years for $17
million before taxes. The required
equipment will cost $15 million and will be depreciated using
5-year MACRS. The expected
salvage at the end of year 8 is $1.5 million. The new product
will require net working capital equal
to 10% of the next year’s sales. This is similar to the NWC
requirements for the existing products.
The company’s cost of debt is 5%, the required return on
projects of this risk is 10% and the
marginal tax rate is 35%. Use Excel to create pro forma income
statements, compute the relevant
cash flows and find the payback period, NPV, and IRR. Based
on this analysis should the company
produce the new product? Why or why not? (60 points)
2. Compute the cash flows, NPV, and the IRR for the following
replacement project. Should you
replace the current equipment? (40 points)

8. Current Machine Proposed Machine
Original Cost 16 million Cost 15 million
Depreciation 7-year MACRS Depreciation 7-year MACRS
Purchased 5 years ago Expected salvage
in 6 years
5 million
Salvage today 6 million Increase in
revenue
500,000 per year
Expected salvage
in 6 years
2 million Increase in
operating cost
400,000 per year
Initial increase in
NWC
200,000
Tax rate = 35%; Required Return 4%