Process Improvement Plan: SWOT Analysis
Uber Technologies Inc. is a leading corporation in the transport sector, with its operations utilized in more than 70 countries and covering more than 400 cities in the world. The company has recently recorded massive growth, with continuing introduction into new countries and cities globally. From a SWOT analysis of the company, it turns out that the business enjoys strengths in the exhibition of different business models, diversity in different countries, and the use of technology to their advantage in operations such as application software and smartphones.
On the other hand, the SWOT analysis of the company also indicates that it exhibits some significant weaknesses when it comes to regulation and management. From the SWOT analysis, the company faces challenges, including the inadequate relationship between employers and employees, uncontrolled processes of operation, operational risks due to high competition, low profits, and, most significantly, poor management. This paper aims to provide strategic business plans to address the company’s weaknesses and to give way forward regarding how to minimize these weaknesses to improving the profitability of the company.
SWOT Analysis Matrix
| Strengths · Exhibition of different business models. · Diversity in many countries globally · Utilization of technology in its operations like app software and smartphones. | Weakness · Inadequate employer-employee relationship · Low profits · Operational risks · Poor management · Uncontrolled operational process |
| Opportunities · Establishment of more advanced technology in operations. · Opening up more branches in countries and cities without Uber services. | Threats · Competition from other companies. · Government oppositions. |
Business Strategy: Minimizing Weaknesses
Uber Corporation’s central role has been to provide a connection between drivers and passengers. The company has since been seen to treat its drivers as independent contractors instead of employees, resulting in a lack of employer-employee relationships (Bevan et al.,2012). This lack of relation has yielded a lack of engagement laws and obligatory services, which have resulted in irresponsibility by individual drivers. In a bid to minimize the negativity resulting from this discord, the company needs to change its system and register all its drivers as employees. The companyalso needs to set engagement laws thatwill govern their drivers in their daily operations. As a result, it will uphold responsibility, improved services, and will task its drivers to abide by the set engagement laws.
In terms of the increased operational risks, which result from increasing competition from other transport companies, the company needs to employ innovative technology and lucrative deals such as granting offers to new customers(Moon, & Woolliams,2000). This approach focuses on creating more awarenessabout their services,outdoing their competitors. The company also needs to participate in community social programs for peacekeeping to help in minimizing protests, which compromise their operations, resulting in low profits. Uber’s management control panel needs to strategize on deploying their drivers in the riots free zones to ensure operational progress even during protests or oppositions.
In terms of low profitability and lack of efficient operational processes, the company’s lack of policies that obligate employees to respond has seen an increase in cases of unethical behaviors by Uber drivers, exposing clients to things like robbery and sexual assault. Such cases have tarnished the company’s name in the public domain(Phadermrod et al.,2019). Therefore, in a bid to eradicate these cases, the company needs to supervise and monitor its employees using technology and also outline misconduct punishments like suspending contracts or fining their employees guilty of misconduct.
In terms of management, with thecompany’s administration accused of eliciting toxic leadership in managing the company, through vices such as discrimination, and ineffective recruitment of workers, the company needs to review its management. Their functions need to be regulated by an oversight committee (Madsen, 2016). Moreover, the company should uphold transparency in its operations by responding to resolving internal matters and client claims without discrimination. Uber technology should also be adjusted to solve any signs of discrimination in the selection criteria for their clients.
In conclusion, these highlighted action plans identified provide solutions that can address the Uber Technology’s weaknesses as determined by the SWOT analysis. The action plan anticipates improving the company’s operations and efficiency upon implementation.Moreover, the application of these plans will help in reducing the negative publicity of the company, reduce the number of unhappy customers, and increase the efficiency of services offered by the company. These factors will collectively boost growth in the company’s operations, therefore, increasing its profit margins.
References
Madsen, D. Ø. (2016). SWOT analysis: A management fashion perspective. International Journal of Business Research, 16(1), 39-56.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2615722
Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.https://www.sciencedirect.com/science/article/abs/pii/S0268401216301694
Bevan, D., Kipka, C., Kumaraswamy, K. S. N., &Chitale, C. M. (2012). Collaborative knowledge sharing strategy to enhance organizational learning. Journal of Management Development.
Moon, C. J., &Woolliams, P. (2000). Managing cross-cultural business ethics. In business challenging business ethics: new instruments for coping with diversity in international business (pp. 105-115). Springer, Dordrecht.