MNB3701
May June Portfolio 2025
Unique Number:
Due date: 2 June 2025
QUESTION 1
Formal and informal institutions are structures that shape the rules of engagement in a
country‟s economic and social systems. These institutions determine how businesses
operate within a specific national context.
Formal institutions refer to established laws, regulations, and official policies enforced by
governments or regulatory authorities. These are written rules that govern behaviour and
business operations.
In the case of Uber in China, the following two examples reflect formal institutions:
1. Government Regulations on Ride-Hailing (2016):
In July 2016, China‟s government introduced a national regulation requiring ride-
hailing companies to register drivers and vehicles, conduct criminal checks, and store
user data within China for at least two years. This regulation made Uber‟s pricing
model of offering rides below cost unsustainable, thus negatively impacting its
competitive advantage (Singh et al., 2020:11).
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Formal and informal institutions are structures that shape the rules of engagement in
a country‟s economic and social systems. These institutions determine how
businesses operate within a specific national context.
Formal institutions refer to established laws, regulations, and official policies
enforced by governments or regulatory authorities. These are written rules that
govern behaviour and business operations.
In the case of Uber in China, the following two examples reflect formal institutions:
1. Government Regulations on Ride-Hailing (2016):
In July 2016, China‟s government introduced a national regulation requiring
ride-hailing companies to register drivers and vehicles, conduct criminal
checks, and store user data within China for at least two years. This
regulation made Uber‟s pricing model of offering rides below cost
unsustainable, thus negatively impacting its competitive advantage (Singh et
al., 2020:11).
2. Raids and Legal Crackdowns:
Chinese authorities conducted police raids and declared some of Uber‟s
services illegal. For instance, in April 2015, police in Guangzhou raided Uber‟s
offices and confiscated over 1,000 iPhones. These actions represent legal
enforcement mechanisms that restricted Uber‟s normal business operations
(Singh et al., 2020:10).
Informal institutions are unwritten social norms, values, traditions, and cultural
practices that influence behaviour. They are not enforced by law but play a major
role in shaping business practices and consumer expectations.
Two examples of informal institutions from the case study are:
1. Consumer Trust in Taxi Drivers over Private Car Owners:
Chinese riders generally trusted registered taxi drivers more than private car
owners. DiDi, unlike Uber, worked with traditional taxi drivers, which helped
them gain trust and approval from both riders and local authorities (Singh et
al., 2020:10).
May June Portfolio 2025
Unique Number:
Due date: 2 June 2025
QUESTION 1
Formal and informal institutions are structures that shape the rules of engagement in a
country‟s economic and social systems. These institutions determine how businesses
operate within a specific national context.
Formal institutions refer to established laws, regulations, and official policies enforced by
governments or regulatory authorities. These are written rules that govern behaviour and
business operations.
In the case of Uber in China, the following two examples reflect formal institutions:
1. Government Regulations on Ride-Hailing (2016):
In July 2016, China‟s government introduced a national regulation requiring ride-
hailing companies to register drivers and vehicles, conduct criminal checks, and store
user data within China for at least two years. This regulation made Uber‟s pricing
model of offering rides below cost unsustainable, thus negatively impacting its
competitive advantage (Singh et al., 2020:11).
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Formal and informal institutions are structures that shape the rules of engagement in
a country‟s economic and social systems. These institutions determine how
businesses operate within a specific national context.
Formal institutions refer to established laws, regulations, and official policies
enforced by governments or regulatory authorities. These are written rules that
govern behaviour and business operations.
In the case of Uber in China, the following two examples reflect formal institutions:
1. Government Regulations on Ride-Hailing (2016):
In July 2016, China‟s government introduced a national regulation requiring
ride-hailing companies to register drivers and vehicles, conduct criminal
checks, and store user data within China for at least two years. This
regulation made Uber‟s pricing model of offering rides below cost
unsustainable, thus negatively impacting its competitive advantage (Singh et
al., 2020:11).
2. Raids and Legal Crackdowns:
Chinese authorities conducted police raids and declared some of Uber‟s
services illegal. For instance, in April 2015, police in Guangzhou raided Uber‟s
offices and confiscated over 1,000 iPhones. These actions represent legal
enforcement mechanisms that restricted Uber‟s normal business operations
(Singh et al., 2020:10).
Informal institutions are unwritten social norms, values, traditions, and cultural
practices that influence behaviour. They are not enforced by law but play a major
role in shaping business practices and consumer expectations.
Two examples of informal institutions from the case study are:
1. Consumer Trust in Taxi Drivers over Private Car Owners:
Chinese riders generally trusted registered taxi drivers more than private car
owners. DiDi, unlike Uber, worked with traditional taxi drivers, which helped
them gain trust and approval from both riders and local authorities (Singh et
al., 2020:10).
