, MNB3701 PORTFILIO (COMPLETE ANSWERS) Semester 1 2025 - DUE 2
June 2025;100% CORRECT AND TRUSTED SOLUTIONS
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 Marks)
Introduction
Institutional theory examines how organizations are influenced by the
formal and informal rules of the environments in which they operate. In
the context of China, a complex interplay of formal and informal
institutions heavily influenced Uber’s market entry, operations, and
eventual merger with Didi. These institutions shaped Uber’s strategic
decisions, compliance practices, and stakeholder engagement.
1. Formal Institutions (7 marks)
Formal institutions refer to codified laws, regulations, and government
policies that govern business operations in a country. In China, Uber
encountered several regulatory barriers that were enforced by central and
local governments.
Example 1: Regulatory Uncertainty and Licensing Requirements
China had no clear national policy on ride-hailing services when Uber
entered the market. Local governments had different interpretations of
how to regulate online ride-hailing platforms. This lack of uniformity
created regulatory uncertainty, making it difficult for Uber to scale
operations consistently across cities.
For example, in Shanghai, Uber was deemed illegal as it did not
possess the necessary licenses.
June 2025;100% CORRECT AND TRUSTED SOLUTIONS
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 Marks)
Introduction
Institutional theory examines how organizations are influenced by the
formal and informal rules of the environments in which they operate. In
the context of China, a complex interplay of formal and informal
institutions heavily influenced Uber’s market entry, operations, and
eventual merger with Didi. These institutions shaped Uber’s strategic
decisions, compliance practices, and stakeholder engagement.
1. Formal Institutions (7 marks)
Formal institutions refer to codified laws, regulations, and government
policies that govern business operations in a country. In China, Uber
encountered several regulatory barriers that were enforced by central and
local governments.
Example 1: Regulatory Uncertainty and Licensing Requirements
China had no clear national policy on ride-hailing services when Uber
entered the market. Local governments had different interpretations of
how to regulate online ride-hailing platforms. This lack of uniformity
created regulatory uncertainty, making it difficult for Uber to scale
operations consistently across cities.
For example, in Shanghai, Uber was deemed illegal as it did not
possess the necessary licenses.
