Managing Strategy

Careem Case:
Base Camp or Mountain Peak
Presented by- HRA Group 10:

Saptarshi Bhattacharjee HRA010

Komal Bihany HRA013
Indrani Majumdar HRA036
D. Srinivasa Sarma HRA054
Manikya Shetty HRA057
What decision should Mudassir Sheikha make in each of the
three situations that face the company? Are these issues
different or symptoms of the same underlying issue, or does each
need to be decided separately?
The three fundamental issues are as follows: Ride-sharing in Amman, digital
marketing in Lahore, and Pakistan budget allocation. Since all these three issues
affecting the organization indicate the need to redefine the centralization vs
delegation efforts, they are not independent issues. They are the symptoms of the
same underlying problem that may be addressed by modifying company policy.

The GMs experience a lack of autonomy in making decisions on the issues for which
they are accountable in all of these circumstances. They should be given some
autonomy to change base camp decisions to match the needs of the local market
because they are more familiar with the ground realities than the base camp teams,
and they should be held accountable for their results. Simultaneously, a policy
should be created that states which components of the project are set and which
can be altered by the GMs to meet local needs, avoiding conflicts by giving the GMs
clear roles and power over their decisions.
Key elements of operating
system
High Performance
Empower the mountain peaks, i.e. the local markets
Foster a culture of personal and professional growth
Administer Human resource activities such as salaries,
promotions, etc.
Retain only employees who align with the company's vision,
mission and culture
Realise the potential of people and design a blueprint
accordingly
Where
should Managing Human
Abdulla and Resource
Ruth start? Their prime focus as of now should be managing the Human
What should resource activities like retaining, terminating, titles, promotion
and pay - all of which aligns with the culture of the company.
they focus
on in their It is mentioned that they were outgrowing people at their
company and steps needed to be taken for that otherwise it
efforts? would just be a waste for resources and time for both the
parties.

In a fast scaling organization such as this, quick and harsh

decisions needs to be taken at time, which is where Abdulla
and ruth should start.
How should Mudassir Sheikha spend his time in the future?
How should he divide his time between:
Working with the team to fix problems in major markets?
Developing processes to make the organization operate
smoothly as they grow?

Mudassir Sheikha, in our opinion, should devote his urgent attention

to resolving difficulties in significant areas, since these markets will
define the company's destiny. Competitors like as Uber have already
made large investments in other areas and will be eyeing Careem's
key markets.

Mudassir can employ specialists to assist him in establishing

organisational structure so that the organisation can function
smoothly while addressing these concerns. After resolving key market
difficulties or ensuring that the teams are on track, Mudassir may
devote his entire attention to long-term organisational adjustments.
Developing new products and new markets like food delivery and online
reservations so that Careem can become the Ecommerce platform for the MENA
market? How does the role of Founder/CEO evolve with organizational growth?

Mudassir Sheikha and Magnus Olsson created Careem, a ride-sharing firm in the Middle
East, in 2012. They saw a lot of potential in the MENA region in terms of digital
opportunities, and they planned to expand their services beyond transportation. After
acquiring Abdulla Elyas' GPS technology business Enwani, they brought him on board as
Careem's third co-founder.

The following are some of the ways in which the founders' roles alter over time as the
company grows:
Careem's beginnings led to tremendous expansion and the necessity for
localization
Overemphasis on expansion requires a mission realignment
Changes in leadership structure in line with Careem's expansion
Recognizing the need for greater productivity
Can there be a single rule for every decision in a
growing organization?
It's difficult to establish a single rule for every decision made in an organization,
especially one in its early phases of development. As stated in the case, there were
several arguments within the organization due to the mismatch between the
demands of the mountain peaks and the requirements of the base camps.

The GM of Lahore, for example, was dissatisfied with the basecamp's decision not to
use a local firm for their marketing effort, despite the fact that it was a very
centralised strategy. A single rule may not work for a developing company for a
variety of reasons:
Distinct markets have different criteria, which must be met so that each decision
is as close to the local requirements as possible. As a result, a single rule for
every situation may not be appropriate. Firms may have to cope with differing
regulations and cultural peculiarities while expanding to foreign nations, which
must be taken into account. For example, it was alleged in the case that Jordan's
captains reject pool bookings and that cash was introduced as a means of
payment solely to cater to Saudi Arabia's markets.
Decentralization will ensure a high level of responsiveness and allow for
immediate action. It will enable the company to respond more quickly to changes
in the local marketplace. This also aids in providing better service to clients.
However, it is critical to ensure that this "decentralisation" of decision-making
does not cause the organisation to lose sight of its mission and vision. Careem
was confronted with similar challenges and decided to restructure its business.
The case's point about "disagree and commit" perfectly illustrates this
organisational challenge. In an organisation, centralization ensures stability and
efficiency while also facilitating compliance and syndication. A single rule for an
organisation is important to ensure that it sticks to its mission and vision and
streamlines all of its decisions, but it should also allow for enough flexibility to
accommodate different markets and regulations - all while staying within the
organization's rules, regulations, and principles.