How to Resolve With Economy Business & Wicked Problems

Question: Discuss the economy business and wicked problems? Answer: Introduction The share economy is also referred to as the collaborative economy or consumption is a concept that revolves around a socio economic system that deals with the sharing of human and physical resources. The sharing can be of different forms from sharing of creations, production, trading and consumption and even distribution of goods and services done by people or organizations. Collaborative consumption on the other can be referred to as the series of economic arrangements where the consumers or the participants share their access to their products and the different services without having a sole ownership. The collaborative consumption can be identified in marketplaces like ebay, Tradepal etc. the collaborative businesses like the Uber and Airbnb are considered to be the growing the shared economy. The aim of this essay is to identify the stakeholders and their relevance on the sharing business. When we talk about stakeholders, we refer to a person or an organization that exercises le gitimate interest in a project. We will analyze their impact on the upcoming sharing business. The essay also focuses on the wicked problems that the sharing businesses are facing and how the concept of sustainable development in the urban areas affects the sharing business? Posing an example of a particular transport sharing business we would try to recognize the wicked problems. Now with wicked problem we mean that a class of social problems that are ill-formulated, confusion regarding the business and conflicting values of the different clients and the decision makers. (Camillus, 2008) It is tough to explain and do not have appropriate solution to the problems. Problems like environmental destruction, poverty, terrorism etc. can be indicated as wicked problems. In this context some case studies are discussed. The sharing economy is the hit topic of debate in the recent media and the world is busy measuring the extent of the success of the business. The main argument related to the rise of the sharing economy is that whether the business is generating wage earning chances to people or whether it is affecting the secure jobs by replacing it. Uber is a popular peer-to-peer transport sharing economy business which has successfully connected riders and driver through the apps. A case study based on Uber which was co-authored by Alan Krueger in a January 2015 paper reveals from the assessment of the internal data that Uber benefits the driver partners and checks the opportunities of finance to more than ten thousand workers. (Journalist's Resource, 2015) The paper also focuses on the positive role of information technology through Uber Apps through which customers can get cabs at lower prices. This generates increased demand for such services which in turn raised the demand for drivers in the f orm of employment. But not all things look good in the sharing business. The courts in Frankfurt confirmed a national ban on the services of the Uber because it is believed to affect the unlicensed taxi services. Apart from this Uber is criticized on the grounds that it engages in exploitation of its drivers. (Godelnik, 2015) Identifying stakeholders The stakeholders are a group of individuals or an organization that affects and are affected by the business decision. In the case of the sharing economy business, we can identify the internal and external stakeholders. Let us consider the most popular transport sharing business Uber and its stakeholders. The internal stakeholders are the owners, managers and the employees in this case are the drivers of the business and the external stakeholders can be recognized as the customers (passengers in this case), shareholders, government and is regulation, society, suppliers of the taxis and the creditors. (Business Stakeholders: Internal and External, 2014) There are substantial impacts of the stakeholders on the business. The shareholders own a part of the business and hold a financial position so if their interest changes then it will impact the business decisions. The consumers are also the stakeholders which can influence the business. If the consumers decide not to avail the peer-to- peer taxi services and purchase a personal car then the business of the Uber will be affected. Similarly the employees can affect the business. As accused by the Massachusetts class-action lawsuit about exploitation of the drivers by Uber, the employees may wish to leave the business which will affect the business. Also the role of the business partners and the suppliers cannot be ignored as their investment decisions and changes in the resource availability like cars can affect the business. But all these stakeholders can influence the business in a positive as well as in a negative way depending upon their decisions. The negative impact of the stakeholders can give rise to wicked problem that cannot be solved. There are several wicked problems that are identified in a sharing economy business (Small Business - Chron.com, 2015). One of them is the consumer protection. (King, 2015) A consumer availing the cab services of Uber meets an accident, the driver has standard insurance but the loss of property is not covered. Another wicked problem case had crept up in 2014 October when New York State Attorney General concluded that 72% of Airbnbs rental sites have violated state laws and regulations. Another prominent wicked problem can be identified from the competition rules. The sharing business like Uber, Lyft are growing and the investors are making money but they might want to exercise market power and dominate others with a view of making easy money. This will restrict new entrants. (Young Global Leaders Circular Economy Innovation New Business Models Dialogue, 2015) Sustainable development a wicked problem The sustainable development of the urban areas deals with activities that consider future growth and find means to continue the development process. Sustainability means not to hamper the needs of the future generation. A transport sharing business may be affected by the sustainable development norms. Transportation is such a sector where greenhouse gas emission is the maximum. This might require the government to take steps which include encouraging walking for short distances, increasing the cost of car ownership and may also increase the taxes related to gases. This will dampen the sharing economy business in the transportation sector. All the sharing business must ensure corporate sustainability by maintaining eco-efficiency that causes wicked problems for them. Conclusion Thus, the wicked problems that the sharing economy faces are identified. From the research we find that there is substantial impact of the stakeholders on the sharing business. The role of sustainable development in the urban areas benefits the people but there impact on the sharing business causes a wicked problem that is impossible to solve. (RITTEL and WEBBER, 2015) References Business Stakeholders: Internal and External. (2014).Boundless. [online] Available at: https://www.boundless.com/accounting/textbooks/boundless-accounting-textbook/introduction-to-accounting-1/overview-of-key-elements-of-the-business-19/business-stakeholders-internal-and-external-117-6595/ [Accessed 18 Mar. 2015]. Camillus, J. (2008). Strategy as a Wicked Problem.Harvard Business Review. Godelnik, R. (2015).Challenge for the Sharing Economy: Become Better Middlemen. [online] Triple Pundit: People, Planet, Profit. Available at: https://www.triplepundit.com/2015/03/sharing-economys-challenge-becoming-better-middleman/ [Accessed 18 Mar. 2015]. Journalist's Resource, (2015).Uber, Airbnb and consequences of the sharing economy: Research roundup. [online] Available at: https://journalistsresource.org/studies/economics/business/airbnb-lyft-uber-bike-share-sharing-economy-research-roundup [Accessed 18 Mar. 2015]. King, (2015).The three regulatory challenges for the sharing economy. [online] The Conversation. Available at: https://theconversation.com/the-three-regulatory-challenges-for-the-sharing-economy-37808 [Accessed 18 Mar. 2015]. RITTEL, H. and WEBBER, M. (2015). Dilemmas in a General Theory of Planning*. Small Business - Chron.com, (2015).What Effects Do Stakeholders Have on Your Business?. [online] Available at: https://smallbusiness.chron.com/effects-stakeholders-business-53361.html [Accessed 18 Mar. 2015]. Young Global Leaders Circular Economy Innovation New Business Models Dialogue. (2015). 1st ed. [ebook] Available at: https://www3.weforum.org/docs/WEF_YGL_CircularEconomyInnovation_PositionPaper_2013.pdf [Accessed 18 Mar. 2015].