Business Environment of Deliveroo | Report
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Added on 2020-02-05
Business Environment of Deliveroo | Report
Added on 2020-02-05
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Table of ContentsINTRODUCTION...........................................................................................................................1Assignment Tasks............................................................................................................................11. Organizational structure..........................................................................................................12. External environment..............................................................................................................23. Competitive Environment.......................................................................................................5CONCLUSION................................................................................................................................7REFERENCE...................................................................................................................................9
INTRODUCTIONThere are many organizations that provide their customers with similar products andservices. These companies face diverse set of issues that affects the business internally andexternally (Abushaiba and Zainuddin, 2012). Firm can make changes in their operations andsolve the internal issues. However, organization do not have control over external factors . It canjust develop steps that can help management to reduce the impact of factors that affectexternally. In this context, it includes internal factors like employees, customers, suppliers,organizational structure, culture, etc. On the other hand, external factors includes change intechnology, policies, climate, taste and preference of customers, etc. (Segatto, Inês Dallavalle dePádua and Pinheiro Martinelli, 2013). This report is about Deliveroo which is one of the fastestgrowing company. It was founded in the year 2013 and is headquartered in London. Main aim ofthis firm is to bring world's local restaurants into everyone's office or home. This report covers,organizational structure that should be used by cited firm. Further, it covers PEST analysis fortwo cities in which Deliveroo wants to expand their business. Lastly, it also includes competitiveenvironment within the market that is faced by Deliveroo. Assignment Tasks1. Organizational structureThere are different type of organizational structure that can be followed by Deliveroo.Organizational structure can be determined as the process in which activities are coordinated,supervised and tasks are allocated (Al-Swidi and Al-Hosam, 2012). To make the businessoperation operate in a systematic manner. Below given are the tow organizational structures thatcan followed by Deliveroo:Flat organizational structure: AS per this organizational structure, there are few levelmiddle management among executives and staff. This type of structure enables the organizationto have effective interaction with all the levels. As per the start up organization, this structure ishigh effective. Employees interaction is preferable as it helps to identify the issues that are facedby them at different levels (Gurjar and Rathore, 2013). It does not clarify the type of roles andresponsibilities that workers would play. However, when any type of requirement is identified,then management would convey it employees and they will perform that particular part of job.There is a senior manager who will look after all employees and he/she will direct and guide1
them so that they perform their role in an proper manner. This enables to develop a strongrelation with each other and all know about how is the performance of all workers. Accordingly,areas in which employees are identified easily and strategies are developed so as to overcome theissues (Khanagha, Volberda and Oshri, 2014).Functional organizational structure: In this type of organizational structure, managementdevelops different departments that work for various areas. In this context, it includesdepartments like marketing, finance, operations, human resource, etc. Each of the department isguided and controlled by a manager who would make use that the work performed by employeesis helping in achieving organizational goals and objectives. However, one of the main issue inthis structure is that workers do not have direct interaction with top management. All the head ofdepartment are guided by top management (Johnson and Turner, 2015). All the decision aregiven top management and it has to be followed by others. It takes time to implement thechanges or strategies that are given by top managers and information flows from top to bottom.The department head has high experience and knowledge relation to his/her area. They makesure that workers make use of their full potential towards the work given.Among these two organizational structure, Deliveroo should make use of functionalstructure as the firm is growing drastically and they are expanding their business at differentmarkets. In this context, they have to hire more and more employees so it is important for themto make division as per different areas (Eikeland, 2014). With this respect, it can be stated thatfor Deliveroo, functional structure will be favourable. 2. External environmentIn accordance with the case, Deliveroo wants to expand their business. In this context,two markets they will make their business expansion are China and Africa. More specifically,cited firm will choose cities like Beijing and Cairo. These cities will enable to make theirbusiness to grow. PEST analysis can be determined management tool that helps to assess macroenvironmental factors (Grant, 2016). It enables the organization to make decision for theirbusiness and to develop strategies that would reduce the risk. With this respect, below given arethe PEST analysis for these cities that will enable to know environmental conditions:PEST analysis for Beijing:2
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