Question: Help me to answer the 3 questions below! Part 2Uber: Key Components of Success Case: Planning, strategic management, and decision making are central activities for
Help me to answer the 3 questions below!
Part 2Uber: Key Components of Success
Case: Planning, strategic management, and decision making are central activities for business success. They should support an organizations purpose and what it wants to be become. Planning, the first of the four functions of management, enables managers to perform the other three functionsorganizing, leading, and controlling. Ubers growth and impact on the transport industry suggests that senior management has done its planning. Lets consider planning, strategic management, and decision making at Uber. Planning: First Key Component of Ubers Success What kind of brand do we want to be? That was the question Travis Kalanick asked at an early meeting in 2010, when the company consisted of four employees in a 10-foot-by-10-foot cubicle, according to Fast Company writer Max Chafkin. Should it be a high-end luxury transportation service that could include airplanes and helicopters, as one person urged? Or should it be low-cost accessible luxury, as Kalanick preferred? If Uber is lower-priced, then more people will want it, he argued.
Decision Making: Paths to Growth As stated at the top of this section, an early decision was to determine what kind of brand UberCab was to bewhat kind of customer service and pricing it should offer. In the initial conception, the company allowed customers to hail black luxury cars, driven by licensed chauffeurs and taxi drivers, at a price that was 1.5 times higher than a taxi. After feuding with various governments and taxi companies over licensing, in 2012 Uber decided to start Uber X following another business model. As Brad Stone writes, what if you opened the service to anyone with a car and allowed [him or her] to pick up passengers looking for a ride via a smartphone app? The price for this service was 10% less than a standard taxi. Another decision was to change the company name from UberCab to Uber so as avoid having to meet the licensing requirements of a taxi firm and to project an image of being different from a regular taxi service. Over its brief history, the company has made several decisions creating new product lines aimed at growing revenue, such as establishing UberEats, Uber Fresh, and UberTASTE for food delivery; UberRUSH for package delivery; and UberCARGOand UberVAN for moving goods. As journalist Kara Swisher writes, Kalanick sees in Uber the potential for a smoothly functioning instant-gratification economy. . . . If we can get you a car in five minutes, we can get you anything in five minutes, he says. Uber also initiated UberPOOL as a carpooling service in which one driver picks up multiple passengers traveling in the same direction. This strategy is effectively working in San Francisco, New York, and Paris as people here tend to travel the same route to and from work. Traditional taxis require background checks on their drivers, but Uber and other ride-hailing companies have decided to push back against these laws. For instance, Kalanick made a decision to fight the fingerprinting of potential drivers, believing the process is too slow and unreliable, and instead the company uses a company called Chekr, which uses other methods. As a result, Uber was forced to stop operating in Austin, Texas, in 2016 because it was unable to circumvent the law on fingerprinting for background checks; alternative ride-hailing companies RideAustin and Fasten have now filled the void. When Uber enters into a new market, according to whosdrivingyou.org, it begins operations with complete disregard for local laws. They allow their hired drivers to begin work illegallyoften providing free rides to entice new customers and avoid local for-hire livery rules. As you might expect, this highly aggressive approach has led to strong resistance from government officials, which has forced the company to spend a good deal of money on legal fees and legal settlements (more than $600,000 in Seattle, $684,000 in California, and $314,00 in Washington D.C.). In 2011, Kalanick made the decision to break in to overseas markets, starting with Paris, over the objections of Uber engineers who, according to Brad Stone, felt that it was too difficult to accept foreign credit cards, convert euros to dollars, and translate the Uber app into French. Never ask the question Can it be done? Kalanick is quoted as saying. Only question how it can be done. A major decision, as mentioned earlier, was for Uber to get into Chinaand then to get out after spending about millions battling rival Didi, which after a long battle agreed to merge with Uber China. The action was in part based on the realization that Uber resources could be better used elsewhere, such as India.
1. Kalanicks question of What kind of brand do we want to be? represents which stage of the strategic management process?
A. formulate the grand strategy
B. establish the mission and vision and values
C. assess the current reality
D. maintain strategic control
E. implement the strategy
2. Uber has made several decisions creating new product lines aimed at growing revenue, such as establishing UberEats, Uber Fresh, and UberTASTE for food delivery; UberRUSH for package delivery; and UberCARGO and UberVAN for moving goods. This strategy is known as
A. vertical integration.
B. single-product.
C. diversification.
D. merger.
E. cost-focus.
3. Uber identified that its former name for Uber X, which was UberCab, created taxi firm licensing requirements. The decision to go with Uber X represents what stage of the rational model of decision making?
A. implement & evaluate the solution chosen.
B. identify the problem or opportunity.
C. develop a diagnosis.
D. think up alternative solutions.
E. evaluate alternatives & select a solution.
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