Strategic planning paper

Strategic Planning for Business

Deon Davis

Bus/475

Richard Taylor

December 11, 2017

Strategic Planning for Business

The division selected for this particular assignment is the parcel delivery unit that is to be added to the highly successful Uber business. This division has been pitted to succeed owing to its alignment to the company’s mission and vision as well as the fact that it will be exploiting a market niche. Using the global reputation that Uber has gained thus far, this division stands a chance of becoming the next new and great product from Uber to penetrate the market. Its success can be spelt out through a balanced scorecard to show the areas where the company will gain competitive advantage over the competition (Coe & Letza, 2014). There are four main factors within the balanced scorecard worth looking into for the sake of the division; these are shareholder value, customer value, process or internal operations and learning and growth of the employees.

Shareholder Value

For this division to live up to its expectations it has to deliver the greatest value for the shareholder. This can only be achieved if profitability is maximized. The distribution channels for the service have already being laid out. Therefore, to minimize costs, the same apps for Uber (passenger and driver apps) should be used by adding a section for sending parcels rather than developing an entirely new app. This will help the company to not only maintain its loyal customer base through vertical integration but also target an entirely new market. The parcel delivery market is dominated by companies such as DHL. However, the advantage that Uber’s parcel delivery service will bring is flexibility. With Uber, parcels can be delivered using easily through existing channels. Client’s will not need to register with another company; all they need is to order a cab and place the parcel for transportation. Uber will eliminate the rigorous information provision by parcel senders. So long as the client has an Uber account and the app, sending parcels have never been easier. This is bound to increase the customer base further and thus the margins will improve (Cramer & Krueger, 2016). Thus, with this convenience, the division will improve the revenue of the company and maximize the shareholder’s value.

Customer Value

The existing customer value measures that Uber has in place within its taxi business will be redesigned and used for the delivery service. Specifically, the first priority for the division will be to deliver the product to its destination in time and in one piece. Thus, drivers will be under strict instructions to not tamper with the parcel. If cases of parcel tampering are reported, such drivers will face an indefinite sack from the company. This will serve to protect the security of the parcels the same way clients are assured of their security as they travel with Uber. Customer turnover rate will also be reduced using division. Not many customers will switch to the competition mainly because they will stick around to enjoy the full-service package offered by Uber. As well, this innovation will create the illusion that the company will be having such new creative services in future. This will be enough to keep hold of the existing customer base and attract more customers. If anything, customers will switch from other companies to Uber. This way, customer value will be created and maintained at the same time (Rogers, 2015). The company will have achieved success two-fold.

Process or Internal Operations

The company’s internal operations will have to change. This change will mainly be due to the increase in competitive advantage. The division will rely a lot on the existing core process of the firm to achieve success. This reliance on the core process within the firm means that add pressure will be experienced within the management of the internal processes of the firm. To successfully manage the pressure, it will be essential to anticipate the impact of change. In other words, it will be crucial for the firm to structure the change management system to cater for the anticipated changes. This may involve hiring more workers to cater for the increased demand or even dedicating more resources towards the maintenance of the app since more clients will be expected to use the app then before. All these are possible solutions in a bid to prevent a scenario where the firm’s internal operations are disrupted or diminished in terms of efficiency. Also, the same performance metric used for the existing services should be applied for this division to ensure that quality is not compromised whatsoever (Cramer & Krueger, 2016). All these steps will help in improving the company from the inside laying a good foundation for the expected changes.

Learning and Growth for the Employees

The employees at Uber form the most crucial of assets. This is because the company prides itself at having one of the best customer-worker relations. It is this core competence that has helped the firm capitalize and leverage its reputation abroad. It is, therefore, in order for the company to continually improve and develop its employees to maintain the company’s values while remaining creative. The employees include the drivers. They are regular training to ensure that the way they handle the clients is not only appropriate but up to current standards. The same approach should be taken by the division. The workers in the division must follow the same professional conduct that is akin and unique to Uber. The parcel delivering drivers will also need to be trained so that their conduct is aligned to the company’s standards. This is crucial because if the division receives complaints regarding quality of the services offered, the backlash will trickle down to the parent company and cause irreparable damage. To avoid this, only drivers with a couple of years work at Uber should be involved in the parcel delivery service to ensure that they have undergone at least on training session (Rogers, 2015). Further, all delivery drivers should be thoroughly checked to prevent hiring thieves or other malicious individuals as delivery drivers.

Conclusion

The division selected for this particular assignment was the parcel delivery unit that is to be added to the highly successful Uber business. There are four main factors within the balanced scorecard worth looking into for the sake of the division; these are shareholder value, customer value, process or internal operations and learning and growth of the employees. For this division to live up to its expectations it has to deliver the greatest value for the shareholder. This can only be achieved if profitability is maximized. The existing customer value measures that Uber has in place within its taxi business will be redesigned and used for the delivery service. Specifically, the first priority for the division will be to deliver the product to its destination in time and in one piece.

References

Coe, N., & Letza, S. (2014). Two decades of the balanced scorecard: A review of developments. The Poznan University of Economics Review, 14(1), 63.

Cramer, J., & Krueger, A. B. (2016). Disruptive change in the taxi business: The case of Uber. The American Economic Review, 106(5), 177-182.

Rogers, B. (2015). The social costs of Uber. U. Chi. L. Rev. Dialogue, 82, 85.