PHASE 2 - PROPOSE STRATEGIES TO CREATE VALUE

EDISON FABIAN DIAZ RODRIGUEZ

C.C. 1057587764
YEFRY ANIBAL GONZALEZ
CC.1118542470
LARRI FABRICIO CELY C
Codigo:1052393618
JHON ALEXANDER PULIDO GARCIA

JUAN MIGUEL OLAVE

NATIONAL UNIVERSITY OPEN AND DISTANCE (UNAD)

STRATEGIC MANAGEMENT
INDUSTRIAL ENGINEERING
2020
 INTRODUCTION

Strategic planning is used in large organizations, since through it you can quickly and effectively learn about the methods
that must be used to achieve results in the short and long term. Those organizations that do not apply such planning, can
mainly be thought to be due to ignorance, fear of change or mere conformity; however, a company calls itself an
“organization” as such, these aforementioned factors should not exist in its lexicon, because the medium is constantly
changing, and a company must always risk being the best at what it does or produces. , not stay stagnant where it is and
always be updated on market demands. For example, an organization whose main objective is quality of service and
customer service, must 100% have strategic planning because every day it must know, adapt and satisfy the demands that the
market has, in this case are the clients, and in turn achieve the desired goals in the established time.
 OBJECTIVES
• It seeks to broaden the vision and horizon of the organization.
• It is based on business expansion, innovation and key and strategic aspects.
• It breaks schemes in products and services, seeking the entry of new products, the opening of new markets, the use of cutting-edge
technology and the restructuring of processes, among others.
• Understand and apply the Porter’s Generic Strategies, BlueOcean Strategy and Value Innovation to create a corporate strategy for the Uber’s
workforce problem.
• Implement knowledge obtained during the first and second phase to create real solutions and ideas to the organizations depending on its
market situation.
 TABLE OF CONTENTS

YouTube link of each student (Activity 3)……………………………………………………………………………..5

Strategy Proposal (Activity 5)…………………………………………………………………………………………6
Strategic Plan (Activity 5)……………………………………………………………………………………………...7
Balanced Scorecard (Activity 5)………………………………………………………………………………………8
Conclusions - one link of audio per student…………………………………………………………………………....9
(Activity 6)
References …………………………………………………………………………………………………………......10
 YOUTUBE LINK OF EACH STUDENT

STUDENT NAME YOUTUBE LINK

EDISON FABIAN DIAZ RODRIGUEZ https://youtu.be/QyfleIfeoYg

LARRI CELY https://youtu.be/PMgyqVYMytg

YEFRY GONZALEZ https://www.loom.com/share/df09799a9

e9348209f6b23ed24eedeaf
Input: LARRI FABRCIO CELY

Michael Porter´s Generic Strategies

   
Strategy Definition
 
This occurs when it has lower costs than its competitors for a product or service similar or comparable in quality. Thanks to
the cost advantage the company manages to lower its prices until canceling the margin of its competitor.
Cost Leadership It has been considered that the main source of the competitive advantage in costs is derived from the experience effect which
has its origin in the learning effect. Looking for an advantage in your sector.
This strategy refers to when offering a product or service that, being comparable to that of another company, has certain
Differentiation attributes or characteristics that make it perceived as unique by customers. You can say that for a product that is simple and
that is produced with a specific standardized technique, the opportunities for differentiation are limited.
The market segmentation strategy seeks that companies know the behavior of people when consuming a product or service
and thus offer them what they really need. Try to get companies to focus on a few target markets instead of trying to target
all. It is a strategy often used for small companies, since they usually do not have the necessary resources to attract the
Focus entire public, but it pays to focus their efforts on a market segment. Companies that use this method often focus on customer
needs and how products or services could improve their daily lives. Additionally, some companies may allow consumers to
participate in their product or service.
Input: JHON ALEXANDER PULIDO GARCIA
Michael Porter´s Generic Strategies
   
Strategy Definition
 

This strategy requires a detailed and in-depth knowledge of the activities of the value chain to identify specific ones in which they can achieve cost advantages. The analysis of
activities in the value chain is carried out from the point of view of cost impulses. The main driver in the cost leadership strategy is the experience curve, according to which the unit
cost of production with the accumulated number of units produced. This advantage is considered sustainable, since it is not easy for followers to imitate as long as production
Cost Leadership technology does not change. In contrast, scale difficulties can be more easily imitated.
 

It implies that the business unit offers something unique, unmatched by its competitors, and valued by its buyers beyond simply offering a lower price. It is necessary to understand
the central potential source of differentiation that arises from the activities of the value chain and the deployment of the necessary expertise for these potentialities to become a
reality. Differentiation requires the creation of something that is perceived as unique in the entire industry. Differentiation approaches can take many forms: brand design or image,
Differentiation technology, features, customer service, broker network, or other dimensions.
 

The concentration strategy (both based on costs and differentiation) is characterized by the prior choice of a segment, local market, phase of the production process, etc. and for
adjusting an optimal strategy that responds to the specific needs of the chosen clients. Consequently, it is not about being the best (in cost or differentiation) on the market, but it is
about being the best in the chosen segment. Concentration can be based on the existence of different types of buyers (with different purchasing strategies), on the existence of
different distribution channels (direct sales, by retailers, by representatives, by mail, etc., etc.) and on the possibility of offering different varieties of products (size, quality, price,
Focus performance, etc.)
 
Input: Yefry Gonzalez

Michael Porter´s Generic Strategies

   
Strategy Definition
 
A position where an organization seeks to be the lowest cost provider to a broad spectrum of customers. If a firm can achieve
Cost Leadership the industry’s lowest costs and still charge average prices, it can outperform the competition

A position where an organization seeks to distinguish itself from the competition by offering unique products or services that
Differentiation deliver superior value to a broad spectrum of customers. If a firm can differentiate itself, then it should be able to charge
higher prices and earn higher returns to outperform the competition
A position where an organization targets specific groups of customers or industry segments (narrow scope). A focus strategy
works best when a group of buyers have specific (individualistic) requirements and when the competition is not serving the
segment’s needs.
Focus A. Cost Focus: A position of defining a narrow buyer segment and providing the targeted customers with a desired product or
service at a lower cost relative to the competition.
B. Differentiation Focus: A position of defining a narrow buyer segment and providing the targeted customers with a unique
product or service that delivers superior value relative to the competition..
 STRATEGY PROPOSAL

Group number: 212053_32

Case name: Uber workforce problem
Generic strategy: Recognition Program Cost ☐  Differentiation X  Focus ☐ 

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.
Understanding the different generic strategies, propose a new strategy for the company to face the
problem in relation to its workforce, selecting its type describing how it would be executed,
according to the following chart:

Strategy Proposal
Case Company: Uber Group number:
#212053_32
Type of Generic strategy: Differentiation Cost Differentiation
☐ Focus ☐

Strategy description:
Implement this strategy A company can differentiate its offer to customers in a
large number of ways. The variables on which the differentiation advantage
can be built are related to the technical characteristics of a product, the
characteristics of its markets, the characteristics of the company itself or other
variables that are difficult to classify, such as time or attention to liability
criteria.
 
With the use of different variables this strategy can be carried out:
 
The characteristics of the product, such as size, shape, technology, risk,
security, consistency, durability, pre-sale and post-sale service.
 
 Strategy Proposal
Case Company: Uber Group number: #
Type of Generic strategy: Cost X Differentiation ☐ Focus ☐
Strategy description:
 
In order to be leaders in costs, rigid control and a highly structured organization are necessary, with an incentive system
aimed at achieving quantifiable objectives. Therefore, constant investment, very detailed supervision and systems are
necessary distribution with low cost.
If a company can achieve and sustain cost leadership, then it will be an above-average performer in its industrial sector, as
long as it can keep its prices close to or average for the industrial sector. At prices equal to or less than their rivals, a
leader's low cost position translates into higher returns. However, a cost leader cannot ignore the bases of differentiation. If
your product or service is not perceived as comparable or acceptable to buyers, a cost leader will be forced to discount
prices far below their competitors to achieve sales. This may nullify the benefits of your favorable cost position. A cost
leader must achieve parity or proximity on the basis of differentiation relative to his competitors to be an above-average
performer, even if he relies on cost leadership for his competitive advantage. Parity2 on the basis of differentiation allows
a cost leader to translate his cost advantage directly into higher profits than his competitors. Proximity in differentiation
means that the necessary price discount to achieve an acceptable market share does not outweigh the cost advantage of the
leader, and therefore the cost leader earns returns above the average.
 
 STRATEGIC PLAN
Case Group number: # 212053_32
Company:
Uber

Statement Definition

Mission change the way the world moves. we perfectly connect passengers with drivers through our application. we make cities more accessible, while providing
more opportunities for passengers and more work for drivers.

Vision we want to become the most used means of transport in the different cities, providing confidence and security to our clients, expanding to the rest of the
country

Objectives The Uber transport company is a ‘with a heart’ company that is involved in philanthropic causes, and its purpose is to help people get rid of traffic jams
and thus be able to enjoy more time for themselves

Goals Our intention is to make Uber such an efficient business, and our much-needed cars that it becomes cheaper for people than owning a car, Uber will
probably include cars without a driver, which could eventually avoid the inconvenience of shopping. to the supermarket with a driver. Uber is also
launching new initiatives like UberPool, a car-sharing service, to make trips more convenient, dividing expenses. It is easy to think that a service like
this could become popular for long trips.

Strategies Use of technologies

The company has been able to penetrate the market for new technologies, as it developed a need even before it existed. The convenience of requesting a
transport service from anywhere through a mobile device is the innovation of the century, and it has also been widely accepted in the market.

Market understanding
Maintains continuous and close communication with its customers, uses social networks as a means to feed back to users and give an adequate response
in good time, so that it knows what consumers want and need.

Quality of service
It offers a quality service, well above the competition, since it ensures that the trips are of quality, as well as safe; in addition to ensuring that the
passenger arrives on time at their destination and all for a fair price.
 BALANCED SCORECARD
BALANCED SCORECARD

Case Company: Uber Group number: # 212053_32

Perspective Tactic Indicator

Financial 1.
2.
3.

Processes 1.
2.
3.

Customer 1.
2.
3.

Lear. and Gr. 1.

2.
3.
 CONCLUSIONS

• Today more than yesterday, it is evident that no business strategy can be built on unreliable information or analysis and
therefore the true strategist cannot depend solely on the figures and statistics.
• Strategic management is of great importance since it allows an industry or an organization to establish goals, design
policies, and the resources available to carry them out.

YEFRY GONZALEZ
• When carrying out the activity, we could apply the corporate strategies generating the value in the organization and the
case studied (Uber), promoting innovative factors taking into account the strategic planning, the design and the
execution of the strategy and the strategic control resulting in advantages competitive.
 REFERENCES

López, C. G. (2015). Uber. Transporte de pasajeros y competencia desleal. Recuperado el 11 de 4 de 2020, de

https://dialnet.unirioja.es/servlet/articulo?codigo=5309758
Valenzuela, L. A. (2017). Nuevos modelos de economía compartida: Uber economy como plataforma virtual de prestación de servicios y su impacto
en las relaciones laborales.
Recuperado el 11 de 4 de 2020, de http://ejcls.adapt.it/index.php/rlde_adapt/article/download/458/613
(López, 2015)
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

Kaplan, R. S., & Norton, D. P. (2007). Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 85(7/8), 150–
161. Retrieved from: http://bibliotecavirtual.unad.edu.co/login?url=http://search.ebscohost.com/login.aspx?
direct=true&db=buh&AN=25358567&lang=es&site=eds-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=114566120&lang=es&site=eds-live