Phase 2 - Propose strategies to create value

Santiago Andres Mendez de la peña

STRATEGIC MANAGEMENT
212053_25

UNIVERSIDAD NACIONAL ABIERTA Y A DISTANCIA

ABRIL(2020)
 INTRODUCTION

This assignment tries to show the use of strategies design tools (Porter’s Generic Strategies, ) and strategic
control as Scorecards and plans to solve the problem exposed in the collaborative environment related to
workforce problem of Uber. Based on the Porter’s Generic Strategies the differentiation strategy was selected
and developed as a group where the proposed plan seeks to convert the company to the only of the ride-hailling
market which offers benefits to its drivers without affecting the company incomes, controlling and ensuring the
implementation through a Balanced Scorecard.
 OBJECTIVES

• Understand and apply Porter's generic strategies, BlueOcean strategy, and value innovation to create a
corporate strategy for the Uber workforce issue.

• Implement the knowledge obtained during the first and second phase to create real solutions and ideas for
organizations based on their market situation.
 TABLE OF CONTENTS

• Introduction
• Objectives
• YouTube link of each student (Activity 3)
• Strategy Proposal (Activity 5)
• Strategic Plan (Activity 5)
• Balanced Scorecard (Activity 5)
• Conclusions – one link of audio per student (Activity 6)
• References (Use APA)
 YOUTUBE LINK

• https://youtu.be/-VfyXlk0Azo
 Strategy Proposal
Michael Porter´s Generic Strategies
Strategy Definition
Cost Leadership Organization that seeks to be the lowest cost provider
for a wide spectrum of clients.
Differentiation Organization seeking to distinguish itself from the
competition by offering unique products or services
that offer superior value to a broad spectrum of
customers.
Focus Organization that targets specific groups of customers
or industry segments (narrow scope).
 STRATEGY PROPOSAL

Group number: 212053_25

Case name: Uber workforce problem
Generic strategy: Recognition Cost ☐  Differentiation X  Focus ☐ 
Program
Strategy description: Great work environment and driver’s satisfaction are the aspects to promote in order to generate a
highly motivated workforce in Uber. Therefore, it is important to maintain the motivation of drivers as it is a very positive
aspect and a factor that intervenes in the work performance and contributes to improve the company productivity. To
increase employee motivation a campaign is being implemented. The meaning of this strategy is to be the only company on
the ride-hailing market that offers benefits and training to its drivers as the main objective, offering a set of additional
benefits without giving them full employee status. Among the benefits offered there are 2 types of compensation, economic
and educational. Monetary compensation such overtime, car insurance or gas bonus depends on the average performance
during 3 months (quantity of rides, amount of production and qualification from the riders) and it will be received every
quarter of the year. Educational compensation is a training program held by a third company that offers courses to our
drivers related to drive smart, transit legislation, behaviour engineering and healthy habits. Those courses could be taken
once and are presential or virtual depending on the driver preference.
 STRATEGIC PLAN
Strategic Plan
Case Company: Uber Group number: 212053_25
Statement Definition
Mission Improve stakeholder satisfaction

Vision Coverts into the best company of special transportation and be recognized for great quality services and
wellness for its drivers.
Objectives Establish a training and improvement program that includes driving and customer services skills.

Establish and promote healthy lifestyle for drivers focusing on sedentarism.

Improve the safety conditions for the drivers.

Goals
Strategies Generate a great work environment.
Develop a recognition program that includes training systems and equal remuneration system.

Tactics Recognition program includes overtime, car insurance or gas bonus.

Deploy a training system for drivers, offering them courses focused on drive smart, transit legislation,
behaviour engineering and healthy habits.
 BALANCED
BalancedSCORECARD
Scorecard
Case Company: Uber Group number: 212053_25
Perspective Tactic Indicator
Financial Increase profits without giving to 1 Balance sheet.
the drivers full employee status. 2. Cost effectiveness
3. Indebtedness
Processes Improve service quality offered in 1. Customer qualification and feedbacks.
all the transportation services. 2. Evaluation of the principles of organization of
production.
3. Calculation of technical-organizational
requirements.
Customer Each employee sets a primary 1. Economically active workforce or population.
goal. 2. Participation rate.
3.Underemployment.
Lear. and Gr.
 CONCLUSIONS

• Which are the generic strategies proposed by Michael Porter and how to apply them in a company?
• Being the three generic strategies of global leadership in costs, differentiation and focus or concentration, through them a
company can face the five forces that shape competition in a sector and achieve a sustainable competitive advantage that
will allow it to outperform firms. rivals.
• Where global cost leadership, the company must have the ability to reduce costs in all links of its value chain.
•  In differentiation, the company must produce exclusive services / products that are perceived as such by consumers and,
finally, the focus or concentration (segmentation or specialization) the company focuses on satisfying well-defined
segments, population, products or geographies.

WhatsApp Audio 2020-04-01 at 6.28.03 PM.mp4

REFERENCES

• Eyarathmm, M. Strategic Management, (pp. 122-133) Global Media, 2007. ProQuest Ebook Central, Retrieved from:http://
bibliotecavirtual.unad.edu.co:2460/lib/unad-ebooks/reader.action?ppg=134&docID=3011305&tm=1502838885344
• Hales, G., & Mclarney, C. (2017). Uber’s Competitive Advantage vis-à-vis Porter’s Generic Strategies. IUP Journal of
Management Research, 16(4), 7–22. Retrieved from: http://bibliotecavirtual.unad.edu.co/login?url=https://
bibliotecavirtual.unad.edu.co:2969/login.aspx?direct=true&db=buh&AN=126823931&lang=es&site=ehost-live
• CASPARI, C., & CASPARI, M. (2016). Strategic Planning Moving Ideas to Practice. Camping Magazine, 89(2), 56. Retrieved
from: 
http://bibliotecavirtual.unad.edu.co/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=f5h&AN=1145661
20&lang=es&site=eds-live