Discuss about the Strategic Business and Organizational Strategy.
Maintenance of the environmental sustainability is a basic element of the business. However, it is crucial for the business firm to be sensitive to the environment as environmental sustainability is a big strategic issue in the recent years (Reyes?Rodríguez et al. 2016). Corporate environmentalism is an essential element for the business firm as it enables the business to gain the customers support in their business. However, environmental policy is a vital area of strategic business management. This assignment deals with the strategic issue regarding the environmental sustainability in the context of 13 Cabs. 13 Cabs is a taxi network of Australia, which provides cab service to the customers. It has approx 7,400 taxis in their service. ABC taxis, Maxi Taxis Apple taxi, Lime taxis and Black cabs are the popular brand of such organization. However, this organization is associated with social work as it provides fund to the charities in Australia. In order to control such strategic issue, technological approaches are taken by the organizations. However, 13Cabs focuses on the technological communication to increase the awareness about the environmental sustainability in the customer domain regarding their business. Apart from this, they will use the cab that is technologically designed and reduces the emission of the green house gases. Such vehicle emission control technology will be effective for this particular business.
Environmental sustainability needs to maintain in the business, as it is important for the organization to comply with the government law. However, in the recent years, environmental sustainability management is a big issue in Australia. Hence, it is crucial to increase the involvement of the business professional in managing the environmental sustainability. The Huge rate of the green house gas emission and consumption of the energy sources leads the population towards the danger. On the other hand, people are more conscious about the environmental sustainability in the current years. The government of every country has announced to cut the emission of carbon dioxide that generates from the vehicle (Naranjo-Gil 2016). Hence, it is a big challenge for the 13Cabs to take strategy to maintain the environmental sustainability to recover such strategic issue. Such organization needs to comply with the government environmental law otherwise, they may be forced to change their operation process. However, it is important for 13Cabs to keep the environmental sustainability during their business operation. However, if the environmental sustainability breaks then the whole business will be affected as the legal issue arises against the business (Neugebauer et al. 2016). In the context of 13Cabs, incompliance with the environmental law may force them to change their operation process. On the other hand, it also negatively influences the customers, as people are conscious of the environmental issue. As per the statistics light vehicles are the main source of the emission of carbon dioxide. Apart from this transportation of the vehicle involves in generating the greenhouse gas.
Apart from the environmental sustainability issue, emerging technology leaves often-negative impact on the service process if the organization fails to utilize it properly. It is important for the cab service organization to access the technology properly to reduce the operational risk (Wieland et al. 2016). However, often the employees fail to cope with the emerging technology; as a result, the operation of the business becomes slower. Therefore, technical issues in the service operation affect the quality of the service in the context of 13Cabs.
On the other hand, increased competition is another big issue that affects the profitability of the 13Cabs. In the recent years, many similar industries are operating in the same market segment in Australia, which is the major reason of the huge completion (Sroufe and Joseph 2017). The extreme level of competition in the market affects the brand image of the business. Therefore, often the organization compels to out of the market due to the severe competition. According to the statistics the taxi service network via providing cab has been increasing rapidly rather than other transport service in Australia. This indicates a huge competition in this industry.
Cabs has been facing major strategic issues in their business that they need to overcome. For this purpose, strategic objectives should be taken by this organization. The major strategic objectives are:
The above strategic objectives will be beneficial for 13Cabs in order to improve their strategy. Such three strategies will be effective for this organization to maximize their service by maintaining the environmental sustainability and utilizing the modern technology.
Use of modern transportation technology is the vital strategy for the taxi network service to reduce the emission of harmful gas (Guo et al. 2017). Such modern technology includes mobility management strategy and automotive and fuel technology. In order to meet the climate change, a safe operation via transport technology will be beneficial for 13Cabs. Therefore, providing training to employees will be an effective strategy for the organization to access the modern technology. Apart from this adoption of the low pricing strategy will be helpful for the taxi network service to achieve competitive advantages. Application of this strategy will be beneficial for 13Cabs to survive in the Australian taxi network.
From the above strategic analysis, it has been identified that maintenance of the environmental sustainability is a big strategic issue in the context of 13Cabs that needs to be resolved. The transportation system is a major source of the emission of carbon dioxide and greenhouse gas (Baller et al. 2016). Hence, for the 13Cabs it is essential to reduce such emission while providing cab service. With the help of modern technology, the engines are designed, which reduces the gas emission. On the other hand, low-speed mode of the car is another process to reduce the carbon emission. Use of such car with an advanced engine will bring opportunity for 13Cabs to maintain their environmental sustainability. For the taxi network service, it is important to establish an environmentally friendly business to mitigate the impact of the service on the environment. For 13Cabs an environmentally friendly service will be effective to develop good practice and gain the customer attention.
This organization advertises their environmentally friendly business via the applications through which the customer books the cab. Such environmentally friendly service will make their business unique in the competitive market. Customers will be interested in their service, as they like to take service from an environmentally friendly business. Maintenance of the environmental sustainability helps the business organization to develop the sustainability in the business (Rothaermel 2016). However, 13Cabs will be less dependent on the use of natural resources, which also reduces their operation cost.
One of the major threats of safe operation through use of technology is the high cost (Wieland et al. 2016). In order to maintain the environmental sustainability in the business, 13Cabs want to use the advanced engine in their cabs for low gas emission. This may lead them to invest more in the business, which will decrease their profitability in the near future.
Implementation of the training program to develop the technical skill of the employees is useful to reduce the negative impact of the changing technology (Baron 2016). This will bring opportunities for 13 Cabs to cope with the changing technology. However, 13Cabs is a taxi network service that provides service through the applications. Hence, it is essential for the staffs of such organization to adopt proper technical skill, as the service is technology oriented. Hence, proper training will enable the staffs to operate the apps properly and to give quick service to the customers. This will bring customer attention and belief for this company, which may increase the customer loyalty. On the other hand, utilization of the modern technology will lead the organization to get a valuable position in the global market (Tong et al. 2017). Therefore, this training program will maximize the efficiency of the employees. However, in the recent years, every organization is trying to cope with emerging technology hence, such strategy will enable 13Cabs to meet the challenges of the emerging technology by developing the skill of the staffs.
The training program is an expensive process, which is the big drawback of such strategy (Rose and Hensher 2014). On the other hand, employee engagement is required for the training program. However, often the employees deny taking part in the training program. Hence, less interest of the employees and high cost will be the big threats of the training program.
Huge competition is a big strategic issue of the organization hence, it is important to get competitive advantages in the global market (Peppard and Ward 2016). Low pricing strategy is a good market penetration strategy that enables an organization to increase their sales. However, in the context of 13Cabs use of low pricing strategy for their service will enable them to achieve competitive advantages in the Australian market. Hence, this strategy will enable such organization to get more customers as the customer wants good quality service with low price. On the other hand, such strategy will reduce the competition for such organization. On the other hand, to cope with the huge competition in the market low pricing strategy opens a new for 13Cabs. It will enhance their service demand in the customer domain in comparison to other taxi network services. Low pricing strategy retains the existing customers and brings new customers for a business. 13Cabs will get customers from different parts of Australia by implementing this strategy in their organization.
One of the major threats of the low pricing strategy is the decrease in the profitability (Tham 2016). Providing discount and low price for everyday service will affect the profitability margin. On the other hand, questions arise in the customer’s mind due to the low price of the service while they compare this service with other services.
Emerging global awareness is a big factor that insists the organization to implement the environmental sustainability strategy (Tan et al. 2015). However, people are more conscious about the environmental protection, which insists 13Cabs to maintain the environmental sustainability. Hence, by using the modern technology such organization will be able to establish the environmentally friendly business. Thus, technology is another factor that will help this organization to implement such strategy. On the other hand, organizational culture is another factor that encourages 13Cabs to take initiatives to develop an environmentally friendly strategy. Adoption of the new technology by the different industries in the global market influences 13 Cabs to provide training to the employees to improve their technical skill.
Rapid change in the technology is another factor that influences the taxi network industry to develop new features in their application. This leads them to implement the training program in their organization (Tong et al. 2017). Apart from this expansion of the business in the international market is a vital factor that influences the 13Cabs to adopt a competitive strategy for their organization. It is very common for the consumers to take low price service. Hence, the need of the current market is a crucial factor to implement low pricing strategy. However, such implementation often decreases the number of premium consumers, as they prefer high-quality service with the high price (Wieland et al. 2016).
Conclusion
The entire piece of the current work is associated with the strategic issues and the solutions in the context of 13Cabs. 13 Cabs is an Australian taxi network service that has been facing various strategic issues. Environmental sustainability issue, emerging technology issues, and huge competition are the major strategic issues of such organization. In order to minimize such issues, this company will implement the training program, use of the technologically advanced engine to reduce emission and low pricing strategy. Therefore, such strategies have both positive and negative impact on the service of such company. Global awareness, adoption of emerging technology and the market penetration in the global industry are the potential factors that influence 13Cabs to implement such strategy.
References
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