Strategic Management and Leadership Free-Samples for Students

Question: Discuss about the Strategic Management and Leadership. Answer: Introduction: The competition in the market place has been on rapid rise. In order to make their presence felt in the corporate world, increasing numbers of companies have been turning towards the modern techniques of management. The same is applicable in case of Uber as well. The comparatively new company has been able to make a standard reputation in the corporate market with the application of suitable strategies and by banking on the appropriate leadership approaches (Hill, Jones Schilling, 2014). In this specific essay, the detailed discussion of the leadership and strategic operational techniques of the company have been discussed for better comprehension about the functioning of the company. Company overview: Uber is a networking company which connects registered drivers to the public in close proximity requiring rides. With the usage of the mobile application, any individual will be able to get connected with the nearby drivers to reach their destinations. Due to the innovative concept, the services have been able to gain considerable reputation and within a short span of time the business have expanded in various parts of the world. While the company came into implementation in 2009, it currently extends its services to an approximate of more than 100 countries and has been efficient serving around the topmost cities of the world. Discussion: Over the period of eight years of being in function, the company has been able to gain progress with gradual enhancement in its market share and overall revenue collection. The overpowering presence of the company can be noticed by making sure that the company is capturing a market share of 40% globally. The net revenue of the company has reached $1.1 billion (Eden, Ackermann, 2013). Thus, the constant and significant growth in the market has made the company financially stable. When it comes to application based transport networking, the company is considered to be the most preferred by the mass. It can be inferred that due to the application of certain standard approaches, the company has been able to gain the current status it holds in the market. While the success of the company has been evident, it cannot be denied that there are certain major factors that are primarily contributing towards the same. The first factor leading to the success of the company is the innovation that has been incorporated (Rothaermel, 2015). By merging the digital platforms with the physical needs of the target customers, the company has been able to offer convenience to the customers like never before. With just a few taps on their mobile devices, the customers are able to hire their rides easily. Another reason leading to the business growth is the cost effectiveness of the organisation. It can be observed that Uberextends rides to the customers that are relatively lower in price. In addition to this, the option of splitting the fare by opting for pool is also available (Ethiraj, Gambardella Helfat, 2016). Thus, it can be said that being economically viable is another reason that is leading majority of the people to towards the services offered by the company. Apart from this, many discounts and offers are also extended from time to time to the customers in order to keep their interest intact. The approachable and capable workforce is yet another major contributor towards the success of the company. It is maintained by the company that the employees, as well as the third party service providers like the drivers are having the potential to perform in a certain way which prompts in achievement of the set business targets (Barney Hesterly, 2015). It is maintained that a standard coordination is established in the network that eliminates then confusions related to communication. Even though the company extends value for money services, it also indulges in methods like price surging which makes sure that considerable business growth is attained by the organisation (Goetsch Davis, 2014). The price charges of the cab facilities are raised when the demand is on rise. Thus, banking on the convenience of the target customers, the company makes sure it is able to earn those extra profits in a standard manner. While many may argue that the chances of dissatisfaction of the consumers may arise by following such trends, it has been also observed that there has been no regression on the numbers of cab bookings even after the application of the methods as such (Simons, 2013). Standard marketing strategy is yet another major contributor for the success of the organisation. It can be said that the promotional strategy by utilizing the digital media platform has been able to acquire positive business results for the organisation with the expense of minimum resources (Renz, 2016). In addition to this, the word of mouth promotion also worked in favour of the company resulting in suitable growth in a short duration of time. The strategic channelization of resources is one of the major driving factors of the company. It can be seen that the third party drivers are hired by the company and they are allowed to use their own vehicles. Thus, the company is not required to invest on huge amount for the rides and its maintenance. Moreover, apart from creating more numbers of job opportunities, it can be also noticed that the company offers up to 80% of commission to the drivers. Thus, establishing a healthy relationship with the service providers is given importance by the company which, in turn, is resulting is desirable business outcomes and positioning Uber at the top of the taxi service industry around the globe (Goetsch Davis, 2014). It can be said that by banking upon these factors, the company has been able to make a mark in the global platform. Within a few months of its operation, the company started its services internationally and has been able to capture the attention of the public in this platform as well (LussierAchua, 2015). Since the company has been able to get a standard position in the market, it can be said that the application of the suitable strategy was one of the major factors behind the gained reputation. The strategic potential of the company has been discussed in the below paragraphs. It can be said that the approach through an Omni channel is one of the major reasons that makes the people opt for the services even after the flaws that underlies in the services of Uber (Antonakis House, 2013). The overall services offered has been tried to improve, be it making sure that the interface of the mobile application is easier to ensuring clean and quality rides to the customer. Thus, by focussing on the multiple aspects, it makes sure that the requirements of the target market are fulfilled properly. Along with it, systems like referrals and word of mouth have been adopted so seamlessly that disrupting the taxi service market has been an easy task for them. By extending mutual benefits to the early and loyal customer, third party drivers and the company itself, it has been proving its mettle of possessing the capability to climb the efficiency chart rapidly (Antonakis House, 2014). In order to witness the effectiveness of the organisation, it can be said that the application of suitable framework can be beneficial. Establishing the value chain of the company can provide an overview regarding how the company has been capable of generating the value within the organisation as well (Tourish, 2014). It can be said that the processes that the company follows have been able to derive constructive value for the company. The framework which has been developed by Porter which elaborates on the functioning of a company receiving the raw materials and several processes that are required to be undertaken by the organisation to add value to the raw product and create a product which is finished and ready for consumption (Dvir et al. 2015). Porter explains that any business has to undergo a series of activities. These activities can broadly be divided into primary activities and support activities. While primary activities are related to the inbound and outbound logistics, operations, marketing and sales and so on, the support activities are majorly one to assist their primary counterparts. It is maintained by Uber that the primary activities are performed in a correct manner to enhance the base of the services. It can be said that managing the information system is one of the major tasks that has to be performed by the organisation (Avolio Yammarino, 2013). It is important that Uber maintains a sound GPS system, which enables the drivers to connect with the service seekers and identify their drop location. Thus, it can be said that the maintenance of the GPS system is the primary step to monitor the inbound logistics of the business. Apart from this, potent operational services are established by Uber aswell. Computer controlled systems not only monitor the interlinking of the customers with the drivers, it also takes into account the various schemes and offers that the customers may be subjected to by availing the said services. Thus the outbound logistics are maintained as well. The correct distribution of the group is also maintained as soon as the customer signs off to make the payment. In addition to this, it can also be seen that various promotional activities are also adapted by the company to increase its efficiency. It attracts the customers, as well as the drivers willing to get registered with the company with correct marketing and sales approach. In addition to this, the feedback portals of the organisation provide the post-purchase service (LussierAchua, 2015). In addition to this, the support activities like the procurement, management, and infrastructure and so on are supported by the company for a smoother function as well. It can be said that by hiring efficient fleet of drivers, the channelization of the resources is done by the company. In addition to this, the human resource hiring, training and retention process also ensures that significant value is added to the organisation. In addition o this, it can also be said that the management of the technology is also established by the company (DuBrin, 2015). In order to maintain their efficiency, the trending technologies are adopted by the organisation that provides it a competitive edge. This, it can be inferred that by maintaining steps as such, Uber ensures that the value chain process is directed in a standard manner that makes sure that a standard business growth is maintained by adding value to the services extended in a suitable manner. Apart from this tool, another framework that can be helpful in determining the effectiveness of the organisation can be the VRIN framework. On the basis of this framework, it will be easier to establish whether the resources are able to achieve the set business results for the company or not. Further the Adapted value chain for Uber has been presented below The adapted value chain for Uber has been illustrated above. It can be seen that in Uber the main focus has been on benefiting from the shared economy model. Uber has invested heavily in information technology and has focused on connecting the drivers to the customers. Thus a major part of its value chain is sourcing of drivers who would be linked. Further training them in using the app is also essential and finally growing the global network has accounted for the huge success of the organisation. While any organisation possesses certain resources to compete in the corporate market, it is important on their part to maintain certain uniqueness that set them apart from the rest of the competitive crowd. The same is being recognised by Uber as well. Even though there are other competitors present in the market, with the help of suitable tools like VRIN, it will be easier to reflect upon the current situation in themarket and take appropriate steps in accordance with the same. Resource V (Valuable) R (Rare) I (costly for imitation) N (non-substitute) Technology Y Y N N Finance Y Y N Y Customer loyalty Y Y Y N Brand Value Y N Y N Innovation Y Y Y Y Customer service Y Y Y Y Table 1: VRIN framework for Uber While the standard progress of the company has been evident over the period of last few years, it can be said that without the help of standard leadership and monitoring, achieving the same would not have been possible. It can be seen that the company is heavily dependent on the leaders providing the appropriate guidelines for the workforce of the organisation. While the organisation is able to make a standard reputation in the market, it can be said that Travis Kalanick, the CEO of the organisation depends hugely on the efficiency of the workforce to make sure that a democratic leadership style is followed. Laissez-Faire leadership is maintained by the organisation. It is maintained that the viewpoints of the employees are given adequate importance. In addition to this, it is also maintained that a proper communication channel is maintained as well. Series of meetings are conducted which providethe leaders the scope to understand and take into account the ideas that can provide the organisation a competitive edge. In addition to this, it is maintained that the upwards and downwards communication is maintained properly (NohriaKhurana, 2013). The decision making processes and the implementation of the same are faster in the organisation, making it easier for them to attain the set targets within a short span of time due to the following of l inear organisational structure. One of the basic steps that work in favour of the organisation is the lean organisational structure it follows. With not having complex management procedures, it becomes easier for the employees to get in touch with their managers and get their opinions heard. Thus, a smoother functioning is established by the organisation (Van Alstyne, Parker Choudary, 2016). It can be said that the steps as such are helpful in analysing any given particular situation. By having more minds to brainstorm, identifying the potential strengths and weaknesses becomes easier. Thus, considerable steps are taken in order to suit the situation. It can be said that the aggressive and visionary personal attributes of Travis is one of the major reasons for the organisation that has driven it towards its current position. It can be said that the personality of the CEO of the company is more on the verge of driven by impulse (Rauch Schleicher, 2015). Although this factor has been able to garner positive business results, it should also be taken intoconsideration that following the same can pose as a liability for the reputation of the organisation. The aggressive and risk taking attitude of the business leader has lead to the expansion of the company within a few years and set examples of business growth around the globe. Although, loads of criticism and hurdles, like lawsuits, official cases, were faced by the company, it can be said that being a strong pillar for the company was one of the major objectives for him. One of the most relevant theories that can be applicable in the case of management of Uber is the disruptive theory of innovation. This specific technique suggests disruption of an already existing scenario completely to create a new market scenario. It can be seen in case of Uber that it applied the disruptive innovation to make a substitution of the taxi ride industry (Dinh, 2014). As the theory suggests, the disruptive innovation can happen if a low-end business is capable to gain standard business growth by increasing its value and market share considerably. Another scenario is creation of a new market altogether and holding string foot in it. According to the observation, it can be inferred that the company somewhat fulfils both the criteria. On one hand it can be seen that the origin of the company is relatively new and it has been active for even less than a decade (NohriaKhurana, 2013). Although the taxi transport has been hugely availed by the mass, it can be said that this mode of conveyance have been able to bring up drastic changes over the period of time. It can be said that the introduction of Uber was an entry in the already existing taxi transport market. However, the concept of networking transport still did not gain adequate popularity during that time, which makes it a relatively new market (Morschett, Schramm-Klein Zentes, 2015). Even though it can be seen that the competition with the regular taxis were not easy to maintain in the first place, appropriate steps were maintained to make sure that the business is able to make a mark in the competitive market. At the beginning, there were issues with the operations since the prices were higher than the regular taxis, wait time was longer and the drivers were not acquainted with the technology to navigate the systems. However, the scenario changed considerably which, in turn, resulted to be a mainstream establishment factor of the disruptive innovation. Thus, by ensuring that the organisation is able to enhance its network in various cities, the improvement in the overall service quality was maintained. It can be said that it was the visionary approach of the business leaders that prompted the organisation to get the desired position in the market. It was predicted in beforehand by the co-founders that with application of innovative steps and incorporation of technology, it will be easier to offer better services to the public in wrong run (Pisano, 2015). Thus, banking upon the effectiveness of the digital platform, standard growth was noticed by the organisation in the competitive market. What started with just a basic idea was able to get appropriate shape within a few years. It can be said that the application of the suitable business strategy was one of the main reasons behind the same. One of the major contributors was the well planned revenue model. It was realised by the organisation that being a start-up venture, it is important to follow suitable revenue model in order to provide direction to the flow of business. It was recognised by the company that in order to make it big in the industry, it is important to follow step by step methods instead of straightaway jumping into the big league (Eggert, 2016). Thus, the company has been witnessing growth over the years by garnering the loyalty of the customers and expanding its presence in the international market as well. With the company gaining stronger position in the business market, it can be seen that the investors are demanding their investments to get doubled. Hence, it is taken into consideration by the company that the developing markets like China and India are explored further. Hence, the international strategy for the company is to invest in huge amount in expansion around the globe, specifically targeting the developing countries (Isaac, 2014). The aggressive strategy so far has been maintained and channelized properly. The same is being tried to maintain in recent times as well. Even though the company has been witnessing standard growth in the business, it cannot be ignored that the chances of certain threats remain persistent. With the growing popularity of the digital media, it can be seen that many app based taxi rides as such have been entering the market as well (Cohen Sundararajan, 2015). A healthy set of competitors may restrict the company to retain the lead it has acquired over a period of time. Thus, it can be said that appropriate strategies are required to be applied by the company to address the growing competition and maintain a standard position in the market. Conclusion: On the basis of the above mentioned essay, it can be concluded that a start up like Uber has been able to make a mark in the business industry within a short period of time. in order to attain such position, appropriate business strategies were applied. Apart from that, banking on the capabilities of efficient leader and strong organisational culture were another main reason behind the considerable success. However, the scope of certain threats remain persistent that can cause visible harm to the reputation of the company. Thus, a requirement of appropriate monitoring system gets established as well. References: Antonakis, J., House, R. J. (2013). The full-range leadership theory: The way forward. InTransformational and Charismatic Leadership: The Road Ahead 10th Anniversary Edition(pp. 3-33). Emerald Group Publishing Limited. Avolio, B. J., Yammarino, F. J. (Eds.).(2013). Introduction to, and overview of, transformational and charismatic leadership. 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