Strategic Management
4th Edition
ISBN: 9781259927621
Author: Frank T. Rothaermel The Nancy and Russell McDonough Chair; Professor of Strategy and Sloan Industry Studies Fellow
Publisher: McGraw-Hill Education
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Chapter 12.4, Problem 3CC
Summary Introduction
Case summary:
The case explains about the massive growth of company U which made them get global recognition and the problems associated with company U. The valuation of the company is $8 billion in 2017. Despite the massive growth, the firm faces many ethical challenges due to lack of following ethical principles in its operations.
The company is said to disregard laws, rules and regulations in country U, following dynamic pricing system, poaching drivers, disregarding their own drivers, attacking critics, poisoning competitors goodwill and not responding properly to the lawsuits.
The problems of the company multiplied due to the lack of proper governance which made the CEO Person K resign. After his resignation, the company was expected to improve its ethical system and recover from its lawsuits. However, company U has its future for introducing self-driven vehicles.
To explain: Company U business model and deduce its strategic intent.
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