Strategic Management
Strategic Management
3rd Edition
ISBN: 9781259420474
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
Question
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Chapter 12.4, Problem 2CC
Summary Introduction

Case summary:

Company U provides ride-hailing service. The massive growth of Company U got global recognition, overtaking their competitors. The valuation of the company was $8 billion in 2017. Despite the massive growth, the firm faced numerous ethical challenges due to a lack of ethical principles in its operations.

The company disregarded laws, rules, and regulations in Country U by adopting dynamic pricing system, competitive tactics, attacking critics, and not responding properly to the lawsuits.

The problems of the company increased due to a lack of proper governance. The company hired Person DP to take care of public relations and after his charge, the company was expected to improve its ethical system and recover from its lawsuits. However, Company U is planning to introduce self-driven vehicles in the future.

To explain: Company U’s business model and deduce its strategic intent.

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