MNB3701 ASSESSMENT 3 POE SEMESTER 1 2025 Introduction This assignment explores Uber’s operations in China and South Africa through the lens of global business management theories, institutional analysis, cultural frameworks, and strategic evaluation. Dra

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Table of Contents

Introduction ..................................................................................................................... 4

Question 1 ....................................................................................................................... 4

Identify and explain the formal and informal institutions in China that affect Uber’s
operations. Give TWO examples for each institution from the case study to support the
arguments made. (15) ..................................................................................................... 4

Formal and Informal Institutions Affecting Uber’s Operations in China ........................... 4

Question 2 ....................................................................................................................... 8

Question 3 ..................................................................................................................... 10

Evaluate the advantages that China has to offer Uber in its investments in China. Give
FOUR examples for each type of advantage from the case study to support the arguments
made. (10) ..................................................................................................................... 10

Question 4 ..................................................................................................................... 13

Discuss the potential benefits for China as a host country from Uber’s foreign investment.
Give one example for each benefit from the case study to support your argument. (10)
...................................................................................................................................... 13

Question 5 ..................................................................................................................... 16

Analyse how cultural dimensions outlined by Hofstede’s framework might affect the
management of Uber in China by making comparisons between the USA and China. (10)
...................................................................................................................................... 16

Question 6 ..................................................................................................................... 19


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Evaluate how the environmental challenges faced by China affect Uber’s operations. (5)
...................................................................................................................................... 19

Question 7 ..................................................................................................................... 21

Appraise Uber’s key resources and capabilities using the value, rarity, imitability and
organisation (VRIO) framework. (10)............................................................................. 21

Question 8 ..................................................................................................................... 24

In your opinion, did Uber make the right decision to exit the Chinese market, or should it
have continued? Substantiate your answer by FIVE key points. (5) ............................. 24

Question 9 ..................................................................................................................... 27

Reflections (5) ............................................................................................................... 30

Conclusion .................................................................................................................... 31




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Introduction

This assignment explores Uber’s operations in China and South Africa through the lens
of global business management theories, institutional analysis, cultural frameworks, and
strategic evaluation. Drawing on detailed case study evidence, the questions examine
how formal and informal institutions, national competitive advantage, and environmental
factors shaped Uber’s competitive position in China, and how its entry into the South
African market disrupted local industries. Additionally, the questions assess the resources
and capabilities Uber leveraged, the benefits and challenges it faced as a foreign investor,
and whether its decision to exit China was strategically sound. The assignment also
integrates theoretical perspectives such as Porter’s diamond model, Hofstede’s cultural
dimensions, and the VRIO framework to critically analyze Uber’s strategies and
challenges across diverse markets. Each question is designed to apply key global
business principles to real-world scenarios, helping to connect theory to practice.
Together, the answers provide a comprehensive understanding of the complexities
involved in international business expansion, foreign market entry, cross-cultural
management, and strategic adaptation. Through this analysis, the assignment aims to
deepen understanding of how multinational enterprises like Uber navigate competitive
landscapes, institutional pressures, and cultural differences in the global economy.

Question 1

Identify and explain the formal and informal institutions in China that affect Uber’s
operations. Give TWO examples for each institution from the case study to support
the arguments made. (15)

Formal and Informal Institutions Affecting Uber’s Operations in China

The Role of Formal Institutions

Institutions, often described as “the rules of the game,” shape the environments in which
firms operate by providing both formal and informal structures that govern interactions

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