Uber Business Model Analysis and CSR

Uber Business Model Analysis and CSRPart 1Founded in 2009, Uber is a web-based transportation network company headquartered in San, Francisco, California. It offers a taxi-replacement engineering platform that connects device driver-partners with riders via a location-based app and ope orders in over 60 countries around the earth. As the introductory ride-sharing barter, it has become the term utilise when describing the service. conspiracy Africa is a thought-provoking market to enter beca implement of scotch divide, national pride, and towering crime. Ubers aggregate competencies ar its shit name and reputation from universe a first-mover and a embodied agri refinement created from effective natural endowment management that drives entrepreneurship and insane asylum. This has allowed the young company to in effect organize drivers and vehicles it does not own.By being the first web-based transportation network, Uber has a warring advantage over similar companies as a first-mover. As a first-mover, Uber has been satisfactory to register its line of calling model, client problems, and the fast pacing of technology. This has given them the ability to be both proactive and reactive to work out issues in a rapidly changing milieu. Uber had a three-year head set about in the market and took full advantage of it. Its first-mover advantage is blind drunk-specific and employ preserve its competitive edge to pr neverthelesst fast followers from catching up. It has a bold history and used a beg for forgiveness alternatively than an ask for permission system to enter the market. The taxi industry is super fragmented, deeply regulated and mostly stationary in terms of innovation. It realised consumer frustration with the status-quo taxi industry and solved the problem by structure a disruptive business model to execute an aggressive strategy and apply innovation to provide immediate relief to the chaotic situation. Professors Henrich Greve of INSEAD and Marc-David Seidel of the University of British Columbia analyse the lineament of how being a first-mover played in boilers suit success. The two professors realized that first-movers typically had an advantage over rivals, even with an inferior product or service, because they learned from mistakes and became better over time (Greve Seidel, 2014). Only eight years old, Uber is a young company, solely has already become a well-recognized brand. Its brand name has become a verb, synonymous with the online ride-sharing service. Ubers name recognition as a first-mover produces loyalty among current customers and attracts raw customers to its service even before different firms lay down entered the market. As a first-mover, Uber benefits from economies of scale and a vast network of formal stakeholders and resources (drivers, customers, employees, technology, capital, etc.), which allows it to increase efficacy and decrease cost. Its first-mover advantage allowed the company to learn rapidly and obtain self-aggrandizing amounts of data to create customer-driven marketing strategies, labor specialization and industry cooperation. Because of a persistenter learning curve, it can create customer value, drive drink prices and implement much cost-efficient techniques into its business model. Uber is a cut-throat corporation with a vauntingly war chest. Founded in 2009, it is now worth around $70 billion and is the worlds most valuable startup company (The Economist, 2016). Its capital, gained from being a first-mover, allows the company to hyperbolise faster and take risks its competitors cant afford to. Uber formal itself as tech firm and not a transport company, which allowed it to expand world(a)ly and bypass taxicab regulations. If it is not able to enter a specific market because of extensive regulations it implements capital-intensive battle strategy. Uber has been able to spend billions on aggressively fighting and disrupting taxi industries around the world. It also has spent large amounts of money to boost innovation, diversify its business, and lock in strategical relationships with governments and other businesses. Its first-mover advantage has also been able to attract and retain the top endowment fund shaped that has been able to shape its corporate culture.In business, culture is classic because it attracts talented and skilled individuals, increases employee productivity and operational efficiency, and ameliorates quality and reputation. Ubers culture is a core capability and firm-specific because it uses a highly paid, extremely motivated and vary workforce who keep the companys mission at heart. The company created a customer-centric and data-driven culture that promotes creativity and encourages passion. Its culture is based around value creation and uncover This culture was created from its differentiating brand identity, which allowed it to capture and preserve a dynamic gathering of top t alent. Its first-mover advantage, cool image and unique brand identity has created a staff of intrapreneurial millennials by attracting and retaining a workforce of intelligent young talent from all over the world to create its dynamic and innovative-driven. Most of Ubers employees ar between the ages of 25 and 35. It is also one of the few companies in te Valley that hires large amounts of employees with PHDs.Its business model is driven by its culture and has earned it a reputation of providing an enhanced user experience, translating to higher customer satisfaction and increased revenue. Its corporate culture has led to great innovation and Ubers pioneering technology with its verified drivers and cars, its dual-rating system that improves customer satisfaction and user confidence, and has allowed Uber to give a premium level of reliable service at an low-priced rate. Its intelligent and aggressive culture created the atmosphere to bypass high barriers of opening into the ta xi industry. To promote itself, the ride-sharing technology company creates strategic partnerships and uses great advertize and marketing campaigns to promote itself, which has resulted in the companys high visibility and customer awargonness. and an untrammelled fleet of partners and vehicles has made it a globular player in the market.Uber used its strong transferable international brand to enter and disrupt the second African taxi industry. The company implemented its brand and leveraged its current business model into the country by adding programs to address the issues it would face. Ubers brand had the chance of crucifixion from location disadvantages in southeastern Africa because of high crime and unemployment rates, just Uber was able to address these key issues early on, before they had the chance to hurt its intimable brand name and reputation. It improved safety features concerning its service. In South Africa, all drivers had to be verified and an annual follow- up was required to protect users.In South Africa, public transportation was slow and inconvenient. It low cost attracts mostly poorer citizens. there are safety concerns with the taxi services in the country because of high crime and taxi turf war. This issue is increased because taxi drivers hardly accept cash payments. Ubers main coemption will be against Zebra Cabs, a South African metered cab serviceSouth Africa is a technological country where most citizens are technology-savvy. Uber used its disruptive technologies to enter the country by adapting and offering technology that catered to local needs. Uber uses great technology to bring riders and driver partners together.Africa has a huge potential market for Uber and South Africa is the most economically developed country on the African continent Part 2Corporate societal duty (CSR),With the climb up of technology, the world and the business environment has become much globoseized and transparent. Multinational Corporatio ns (MNC) compete in a orbiculate arena. In the realm of rapidly moving business environments and an increased rate of globalization, the purpose of Corporate Social Responsibility (CSR) has become more meaningful and apparent. The fiat of the world has put substantial pressure on these global firms to lead them accountable for activities and actions. CSR can be simply summarized as doing the in good order thing. It is concerned with how the activities of firms have an impact of the fundamental, economic, and social impact on society. suave a relatively young undefendable, CSRKim Kercher examinedHistory, look for and Writings on CSRThe belief of corporate social tariff is a relatively young subject matter, mainly a product of the 20th century, especially the last 70 years. Its roots can be traced back centuries further, barely formal create verbally on the subject has been a product of recent times. Archie B. Carroll traced the evolution of modern CSR back to 1950s (Ca rroll, 1999). Before the 1950s, CSR was referred to simply as social right (SR), possibly because these periods preceded the era of corporate influence and dominance. The contemporary idea of CSR was established by Howard R. Bowen, known as the Father of CSR because of his early and influential work. In his landmark book Social Responsibilities of the Businessman, Bowen sweard that the worlds largest businesses were vital centers of power and decision fashioning and the activities of these specific firms affected the lives and aspects of many (Morrison Bridwell, 2011). In his 1953 publication, Bowen argued that corporate tariff encompasses more than following the law and reaches beyond a legal scope. Bowens social certificate of indebtedness doctrine explained the responsibilities businesses owners had and how they moldiness protect humanity from the harmful side cause of trusted business activities by implementing policies and rigorously following them. The 1960s were hear ty in the history of corporate social responsibility. The depth of CSR began to expand in the 1960s as one of its first and most influential writers, Keith Davis (1960), delimit social responsibility as businessmens decisions and actions taken for reasons at least partially beyond the firms direct economic or technical matter to and that being socially responsible would pay the company back in the grand run, through an increase of economic gain. In his piece, the Iron Law of Responsibility, Davis observe that businessmen were more worried about profit and immediate economic interests than they were about other important subjects. He broadened the thoughts of Bowens Social Responsibilities of the Businessman by stating that social responsibilities of businessmen need to commensurate with their social power. Davis argued social responsibility should consider the environment and other issues regarding public welfare issues and that the power of corporations must continuously be ch ecked by social responsibility. The term CSR was first used in the 1970s and became widespread due to globalization.Core Characteristics and Benefits jibe to Sen and Korschun, CSR is driven by stakeholder relations, social obligations and marketing (Sen Korschun, 2006). Every firm is responsible and held accountable to its stakeholders. In spite of many efforts to create a fire and impartial definition of CSR, there is still no universally fabricate definition for the concept. While the fundamental features of CSR are visible in the shape and remain the core characteristics of the concept, hardly any definition includes them all. Aminu Ahmadu Hamidu, Harashid Md Haron, Azlan Amran (2015) commonwealth that corporate social responsibility has six characteristics Voluntary, Internalizing or Managing Externalities, Multiple Stakeholder Orientation, fusion of Social and Economic Responsibilities, Practices and Values, and Beyond Philanthropy.Strategic CSR Corporate social responsi bility has become a standard business practice in the business environment, even more so for multinational corporations. CSR has been implemented into global stigmatisation and is the core of many business strategies in order to promote long term growth. Jevons and Polonsky (2009) believe that todays multinational corporations must view CSR from a strategic view within the global arena. With an advance of technology and faster converse channels, consumers are more aware on world and business events. Studies have shown that the ethical conduct of firms has a great influence on the buy decisions of consumers. In an investigation by Environics International, more than twenty percent of consumers utter their purchases were companies based solely on how they perceived the business (Mohanty, 2008). With increased interest from customers and other stakeholders (employees, suppliers, investors, communities, and activist groups), there is a growing demand for great disclosure. Because of this, organizations and the individuals within them must consider its complexity and explore it to better understand how it is related to branding strategies. Because these multinational firms operate in several business environments, they must be able to relate each set of responsibilities at numerous points, encompassing a variety of company activities (Valor, 2007). Strategic CSR is used to help firms achieve a positive impact on society while maximizing the dish outd value for all the organizations stakeholders. The notion of role value creation derived from Professor Michael Porters possibleness of competitive advantage (Porter, 2011). This theory suggests that firms need a structuralist view to create a strategic share value for competitive thinking. By implementing this strategy, firms are able to defend themselves against competitors. Firms use strategic CSR in the daily operations of the firm and is central to the activities of the firm value creation system. Werther an d Chandler (2005) examined several multinational companies and found out that global brands are often central to competitive strategy and work by guaranteeing consumers are provided the best in quality, consistency, and security. By delivering customers guarantees, these brands can reduce costs while increasing profits. Studies have discovered the positive effect of CSR practices on profitability and other performance measures (Goyal et. al, 2013). The publics expectation of firms is that they will function in humanitys best interests. With the rise of technology and social media, the importance of CSR is intensified. David Woods studied the correlation of revenue and CSR and found out that CSR is not only ethical, but profitable, especially in regards to long term gains (Woods, 2011). Woods wrote that studies have shown that organisations that had a genuine commitment to CSR substantially outperformed those that did not, with an average return on assets 19 times higher. Kellie McEl haney (2007) believes that CSR is more of a strategy than a concept. McElhaney does not believe that CSR is a remedy to the problems that affect the externalizeet, its inhabitants and the global business environment, but a practicable and essential element of overall business strategy. McEkhaney believes to be more effective, strategic CSR needs to be aligned with the core business objectives and core competencies of the organization. Matthews (1982) believes that corporations are not monolithic entities, but organizations administered and controlled by individuals and attached in the societies in which they operate. Because of this aspect, CSR must reflect the human element of firms and contribute to their communities and overall society.Impact of Globalization on CSRProfessor Roland Robertson defines globalization as the muscular contraction of the world and the intensification of consciousness of the world as a whole (Robertson, 1992). Consumers are no longer restricted to thei r smaller-scaled home markets and now have feeler to a vast international market. Globalization, especially for multinational corporation, brings more opportunities and benefits, but also creates ethical issues and other problems when dealing in foreign countries. CSR covers a wide range of interests and the rapid rate of globalization has led certain corporations and developing countries to become significant players in the world economy. However, developing countries with uphill economies have critically encountered an abundant amount of issues (religious, governmental, social, cultural, environmental, etc.) Rhys Jenkins (2005) studied the effects of globalization on CSR and its influence on society. Jenkins notes that the present movement and concentration of global CSR today dates back to the early 1990s. This movement led to the international rise of CSR, global deregulation, the creation of development agencies, increased foreign investment, and the reduction of poverty, but played a major part in the shrinking role of national governments. With globalization and corporate responsibility intertwined in an increasingly competitive market, the influence and responsibility of business firms is increased while the control of governmental bodies is reduced. Historically, national governments depended on regulatory measures to bring societal and ecofriendly purposes to the business sector. Verma (2015) claims that dwindle government resources, combined with a suspicion of regulations created a search for uncoerced and non-regulatory initiatives which reduced the power of governments. Scherer and Palazzo (2011) assert that it is crucial to shift towards a larger, politically-centric concept of CSR, especially in a globalized world. Because of globalization, the authority of national governments is getting weaker when it comes to regulation the activities of global firms. Governments around the world are in a unbroken battle (and race to implosion) with oth er countries in order to win the competition. Corporations must practice morally and promote ethical decision making standards in order to avoid political conflict and the societal consequences. Global firms are not only responsible of their in-house activities, but also for the activities of their suppliers and partners. Due to an maturation of child labor from its suppliers, Nike faced a global consumer boycott and had to make extensive enhancements in the working environments of its various supplier plants (Brause, Locke and Qin, 2007). While around activities and practices may reduce costs and legal in some move of the world, partaking in these unethical business practices may be considered immoral and violate the publics perception of the company.The Future of CSRBowen, H.R., 2013. Social responsibilities of the businessman, Iowa City University of Iowa Press.Hamidu, A.A., Haron, H.M. Amran, A., 2015. Corporate Social Responsibility A Review on Definitions, Core Characteri stics and Theoretical Perspectives. 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Quality management practices , New Delhi outstrip Books.Polonsky, M. and Jevons, C., 2009. Global branding and strategic CSR an overview of three types of complexity. International Marketing Review, 26(3), pp.327-347.Porter, Michael E. Competitive advantage of nations creating and sustaining superior performance. Simon and Schuster, 2011.Robertson, R., 2011. Globalization social theory and global culture, capital of the United Kingdom Sage.Scherer, A.G. and Palazzo, G., 2011. The new political role of business in a globalized world A review of a new perspective on CSR and its implications for the firm, governance, and democracy. Journal of management studies, 48(4), pp.899-931.Seidel, H.R. Marc-David, G.L., 2014. Being Early Beats Being Better. Harvard Business Review. on tap(predicate) at https//hbr.org/2014/06/being-early-beats-being-better Accessed February 23, 2017.Sen, S. Korschun, B., 2006. The Role of Corporate Social Responsibility in beef up Multiple Stakeholder Relationships A Field Experiment. J ournal of the Academy of Marketing Science, 34(2), pp.158-166.The Economist, 2016. Uberworld. The Economist. Available at http//www.economist.com/news/leaders/21706258-worlds-most-valuable-startup-leading-race-transform-future Accessed February 21, 2017.Valor, C., 2007. A global strategic plan for corporate philanthropy. Corporate Communications An International Journal, 12(3), pp.280-297.Verma, L., 2015. Impact of Corporate Social Responsibilities in Modern Business Environment. International Journal of Scientific and Research Publications, p.580.