COURSE CODE: BCOBM111 COURSE NAME: BUSINESS MANAGEMENT Task brief & rubrics
The final assignment consists of two parts: open questions and a case analysis. The students should prepare it individually and submit one pdf document covering the following points:
PART 1: Answer the given questions as fully as possible providing examples of real companies to prove your answer.
Question 1 (15% of total grade): What is a strategy and what are the main challenges to making good strategy?
Question 2 (15% of total grade): There is often a discussion about the value of rewards for promoting employees performance and staff retention. Is money more important than job satisfaction? Can you demonstrate it on a real-life example?
Question 3 (10% of total grade): Make SWOT analysis of Toyota company. What advice would you give to CEO Akio Toyoda today?.
PART 2: Read the case and answer the questions based on it.
The Growth of DiDi Chuxing
Chinese ridesharing company DiDi Chuxing was formed from the 2015 merger of rival firms DiDi Dache and Kuaidi Dache. Its vision is to become a global leader in transport and transport technology, through providing taxi and ridesharing services, ranging from chauffeur-driven services, to bus and car ride sharing, and even bike hire, with access gained through smartphone applications. Services extend to organizing car-pooling and private long-haul buses to help reduce traffic congestion and pollution, and in 2018 the company estimated this saved 500 million litres of fuel and reduced daily carbon emissions by 13.5 million tons.
In 2016 the company was valued at $28 billion and employed 7000 people, of whom 40% were female. DiDi put-maneuvered Uber in China and finally purchased Uber’s Chinese business in 2016, but in return Uber gained a small stake in DiDi Chuxing. DiDi is the dominant player in China but this is a saturated market with little room for growth. Cheng Wei, CEO of DiDi Chuxing since the 2015 merger, implemented a growth strategy and a company spokesperson described this strategy to Forbes: “We will put more energy and resources in the international market to explore the frontier technology, innovate new models of business, and seek like-minded partners”. Moving into markets outside mainland China meant moving into some markets already dominated by Uber.
DiDi’s expansion outside China
Since then the company has moved quickly to establish footholds in markets, including India, Southeast Asia, Japan, Latin America, Mexico and is starting to get a foothold in the US. Its entry to some of those markets have been through investments in competitors, such as Ola in India, in Singapore and Lyft in the US. DiDi plans to across Australia and New Zealand, but in 2019 was only operating in Brisbane, the Sunshine and the Gold Coasts in Queensland, Newcastle in New South Wales, Melbourne and Geelong in Victoria and launched in Perth, Western Australia, in November 2019. In Australia, the DiDi service charge is 11%, which leaves a better rate for drivers as well as competitive rates for passengers.
Things have not been going well for Uber (valued at $70 billion). The company suffered from the leak of 57 million rider and driver records, was accused of spying on competitors and has been enmeshed in costly litigation in different countries.
DiDi capitalized on Uber’s setbacks. Its growth focused on expanding across continents at the same time. This is risky because of the cost and risk associated with expanding overseas, especially when competitors like Uber are already entrenched. According to an analyst with Bloomberg News, DiDi should have started its overseas expansion in southeast Asian markets that did not have as much entrenched competition – like Vietnam and Malaysia. However, the company seems to want to make a bigger splash by expanding across multiple contents at once via different expansion models.
The expansion outside China started with a partnership in the island neighbor of Taiwan. DiDi starts operations there with the help of a Taiwanese partner named LEDI Technology, which was DiDi’s authorized franchisee in the country. Taiwan is a tricky market to enter because its lawmakers and its taxi industry have been successful in forcing organizations to conform to its transportation rules. Fines for illegally transporting passengers can be as high as US$834.000/infraction, and Uber reportedly racked up more than US$30 million in fines in one month alone, causing the company to briefly suspend service across the country. DiDi is trying to avoid making the same mistake.
DiDi used another model of expansion in South America and India by purchasing existing companies. Fortune reported that in 2018 DiDi acquired Uber’s largest Brazilian rival, 99, “potentially creating a formidable rival to Uber in Latin America’s largest economy”. Cheng Wei stated that “globalization is a top strategic priority for DiDi”. It’s not easy in the ridesharing industry because of competition from Uber. It is a fight for brand, and DiDi doesn’t have a global name that probably has a same recognition level as Uber.
DiDi has not been shy about expanding north of Brazil, even without significant brand recognition in the Americas. The company hopes to enter the Mexican market next year without a Mexican partner. This would be the first overseas operation outside China without local partner management or the purchase of an existing organization. It would also allow DiDi to utilize its own smartphone app and recruit local drivers to its platform. This is especially significant Mexico City, one of Uber’s busiest markets in the world. And the move put it right on the US doorstep. Trying to enter an Uber-dominated market that also includes Cabify (Spanish rideshare company) without local partner support could be costly and risky. Consider what happened to Uber when it challenged DiDi in China: it lost billions of dollars sudsidising drivers to keep its prices low, and in the end it still had to bow out. Is DiDi ready for another price war in order to gain market share?
DiDi Chuxing’s CEO is a different personality to Uber’s Kalanick, being much more restrained and private. Nonetheless, DiDi has had its own problems; in two separate incidents in China, two drivers were charged with the murder of two passengers, which caused a public backlash against the company and passenger use fell. In early 2019, DiDi laid off around 15% of its Chinese staff. In addition, former car companies DiDi had previously been in partnership with are setting up their own ridesharing services in competition. Another major problem that DiDi faces is that while valued at an estimated US$60 billion, much like Uber, its is struggling to turn a profit. DiDi executives reported that in early 2019, the company was losing 2% on every fare.
1. What obstacles remain for DiDi as it challenges Uber’s control of the ridesharing industry? (20% of total grade)
2. DiDi’s CEO Cheng Wei stated that globalization is a top strategic priority for the organization. Explain how DiDi is utilizing major developments in globalization to its advantages. (20% of total grade)
3. DiDi is based in China and as part of its expansion strategy has targeted countries in its own region and the other BRICS nations of India and Brazil. Why is this significant? (20% of total grade)
· Wordcount: 1500 words for Part 1 and 2.
· Cover, Table of Contents, References and Appendix are excluded of the total wordcount.
· Font: Arial 12,5 pts.
· Text alignment: Justified.
· The in-text References and the Bibliography have to be in Harvard’s citation style.
Submission: Week 13 January 21st, Sunday 23.59h – Via Moodle (Turnitin).
Weight: This task is a 60% of your total grade for this subject.
It assesses the following learning outcomes:
· Outcome 1: Explore the interdependence between the organization, its environment, and the choice of organizational structure.
· Outcome 2: Discuss the importance of decision making, business planning and business strategy.
· Outcome 3: Forecast trends covering business management in the future.
Fail Below 60%
Marginal Fail 60-69%
Fair 70-79 %
Very poor coverage of central purpose, goals,
research questions or arguments with little relevant information evident.
Virtually no evidence of understanding or focus.
Minimal understanding of purpose of the study;
factual errors evident. Gaps in knowledge and superficial understanding. A
few lines of relevant material.
Reasonable understanding and clearly identifies
the purpose, goals, research questions or argument.
Reflect partial achievement of learning
A sound grasp of, and clearly identifies, the
purpose, goals, research questions or argument. Some wider study beyond the classroom
Effectively describes and explains the central
purpose, arguments, research questions, or goals of the project; explanation
is focused, detailed and compelling. Recognition of alternative forms of
evidence beyond that supplied in the classroom.
Content is unclear, inaccurate and/or
incomplete. Brief and irrelevant.
Descriptive. Only personal views
Unsubstantiated and does not
support the purpose, argument or goals
of the project. Reader gains no
insight through the content of the
Limited content that does not
really support the purpose of the report.
Very poor coverage.
Displays only rudimentary knowledge of the content area. Reader gains
few if any insights
Presents some information that adequately supports the central purpose, arguments, goals, or
research questions of the project. Although parts missing, it demonstrates
a level of partially proficient
knowledge of the content area.
Reader gains some insights.
Presents clear and
appropriate information that
adequately supports the central
purpose, arguments, goals or
research questions of the project.
Demonstrates satisfactory knowledge of the content area. Reader gains
Presents balanced, significant and valid information that clearly and convincingly supports the central purpose, arguments, research
questions or goals of the project. Demonstrates
in-depth and specialised knowledge of the content area. The reader gains important insights
Style & Tone
Writing is poor, unclear and
unengaging, and the
reader finds it difficult to read and maintain interest. Tone is not
professional or suitable for
an academic research project. A reorganization and rewrite is needed.
Writing is unengaging and reader finds it difficult to maintain interest. Tone is not consistently professional or suitable for an academic research project. Work needed
on academic writing style.
Writing is usually engaging and keeps
the reader’s attention. Tone is generally
appropriate for an academic
research project, although a
clearer and more professional style
and tone is needed.
Writing style and tone is generally
good and sustains interest
throughout. Tone is professional and appropriate for an
academic research project.
Writing is compelling and sustains interest throughout. Tone is
consistently professional and appropriate for an academic research project.
The written project exhibits
multiple errors in grammar, sentence
structure and/or spelling. Inadequate writing skills (e.g., weaknesses in language facility and mechanics) hinder readability and contribute to an ineffective research project.
The written project exhibits
errors in grammar, punctuation and spelling. The written project comes across as untidy and not properly checked for mistakes. Errors present in written communication make
Written research project displays good word choice, language conventions and mechanics with
a few minor errors in
spelling, grammar, sentence
structure and/or punctuation. Errors do not represent
a major distraction or obscure meaning.
Readability of the
project is good due
to the clarity of language used.
Grammar, spelling and punctuation
is without error.
Spelling and grammar thoroughly checked.
Readability of the
project is enhanced by facility in language use/word choice. Excellent mechanics and syntactic variety. Uses language conventions effectively (e.g.,
sentence structure, paragraphing,
Analytical / Critical
Research problem, concept or
idea is not clearly articulated, or
its component elements are not identified
or described. Research information
is poorly organized, categorized
and/or not examined; research
information is often
inaccurate or incomplete. Presents little if any analysis or interpretation; inaccurately and/or inappropriately applies research methods, techniques, models, frameworks and/or theories to the analysis. Presents few solutions or conclusions; solutions or conclusions are
often not well supported,
are inaccurate and/or inconsistent, and are presented in a vague or rudimentary manner.
Research problem, concept or
idea is not clearly articulated at times
and confusing. Research information
is badly organized, categorized,
and/or only superficially examined;
research information is often
incomplete. Presents limited
analysis or interpretation; inaccurately and/or inappropriately applies research methods, techniques,
models, frameworks and/or theories to the analysis. Presents some
solutions or conclusions but they
are often not well supported, or
Adequately identifies and describes (or sketches out) the research problem, concept or idea and its components. Gathers and examines information relating to the research problem, concept or idea; presents and appraises research information with some minor
inconsistencies, irrelevancies or omissions. Generally applies appropriate research methods, techniques, models, frameworks and/or theories although with inaccuracies. Outlines solutions or conclusions that are somewhat logical and consistent with the analysis and evidence; identifies and/or
lists solutions or conclusions although not always clearly.
Formulates a clear description of the research problem, concept or idea, and specifies major elements to be examined. Selects information
appropriate to addressing the research problem, concept or idea; accurately and appropriately analyses and interprets
relevant research information.
Effectively applies appropriate
research methods, techniques,
models, frameworks and/or theories
in developing and justifying
multiple solutions or conclusions;
solutions or conclusions are
coherent, well supported and
Effectively formulates a clear description of the research problem, concept or idea, and specifies major elements to be examined. Selects and prioritizes information appropriate to addressing the research problem, concept, or idea; accurately and appropriately analyzes and interprets relevant research information.
Precisely and effectively applies appropriate research methods,
employs advanced skills to conduct research.
Uses techniques, models, frameworks
and/or theories in developing and
justifying multiple solutions or conclusions; solutions or conclusions are
insightful, coherent, well
supported, logically consistent and
complete. Displays a mastery of complex
and specialized areas.
Shows little ability to employ theory and practice across the functional areas of business in the assessment of issues relating to the research problem, concept,
or idea. Does not recognize or
correctly identify cross-functional organizational issues relevant to the research problem, concept or idea. Does not adequately evaluate the research problem, concept or idea in light of relevant principles, theories and practices across the business functional areas. Few if any solutions,
recommendations for action, or conclusions
are presented, and/or they are not appropriately justified or supported.
Shows some ability to employ
theory and practice across the functional
areas of business in the assessment of issues relating to the research problem, concept or idea.
Recognizes organizational issues
relevant to the research problem, concept or idea but does not show understanding. Does not adequately evaluate the research problem, concept or idea in light of relevant principles, theories and practices across
the business functional areas. Some solutions offered but difficult to understand. Recommendations for
action, or conclusions are presented, but they are
often not well supported, or logical.
Exhibits application of principles, theories and practices across the functional areas of business to the analysis of the research problem, concept or idea. With some exceptions, outlines and describes (or sketches out) some cross- functional organizational issues that
are relevant to the research problem, concept or idea.
Adequately identifies and
describes (or summarizes)
solutions, recommendations for
action, or conclusions that are,
for the most part, appropriate, but
which need to be more aligned with principles and concepts in the functional areas of business.
Demonstrates an ability to integrate
and apply principles, theories and practices across
the functional areas of
business to the analysis of the
research problem, concept or idea.
Identifies, examines and critically evaluates important cross- functional organizational issues associated with the research problem, concept or idea.
Clearly justifies solutions, recommendations for action, or conclusions based on analytics and an insightful synthesis of cross-disciplinary principles and concepts in the functional areas of business.
Demonstrates well-developed ability to integrate and apply principles, theories and practices across the functional areas of business to the analysis of the research problem, concept or idea.
Effectively identifies, examines and critically evaluates
important cross-functional organizational issues associated with
the research problem, concept, or idea.
Clearly and effectively justifies solutions,
recommendations for action, or
conclusions based on strong
analytics and an insightful synthesis
of cross-disciplinary principles
and concepts in the functional areas
of business. Can link thinking across disciplines and contexts.