Ocado's Expansion in Belgium

This assignment examines Ocado's potential expansion into Belgium, focusing on the influence of the Belgian business environment. Using models like PESTLE analysis and Porter's Five Forces, the report analyzes factors such as political, economic, legal, technological, environmental, and social aspects to determine their impact on Ocado's decision-making process. The background of both Ocado, an online supermarket, and Belgium are discussed, highlighting key economic indicators and competitive landscapes.

Business Organisations and Environments in a Global Context

Business Organizations and
Environments in a Global
Context

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Background of company..............................................................................................................1
REFERENCES................................................................................................................................3

INTRODUCTION
In present scenario, operating and managing business at global level has become complex
task. Companies operating business at international level have to face various issues and
challenges due to change in business environment. Business are extremely effected by changes
in external environment. There are various variables which might affect company and its
business structure these are political, economic, legal technological etc. Study of business
environment in global context is essential in order to address those factors which might have
impact on business operations. Allocated country is Belgium. The selected organization is
Ocado. It is basically an online supermarket.
The purpose of report is to analyses the factors which may highly influence the Ocado
decision related to the expansion of business in particular country. Various models such as
Porters five force and Pestle analysis will be used for analyzing the effect of changes in business
environment on organization.
MAIN BODY
Background of company
Ocvado has its headquarter in hatfield, UkBusiness entity has developed and operate a
unique business model which has enabled an organization to achieve leadership position in an
industry. Business model has been specially designed for catering the needs and demands of
those customers who prefer to make purchases of goods or services online. Company has mainly
focused on making home delivery of good quality drinks, foods and house hold products.
Revenue of company is 1, 4623.7 million pound (2017). An operating income of firm during
2017 was 14.7 million pound (Ocado group , 2018.). Products offered by an enterprise are own
brand groceries, flowers, toy magazines etc. In addition to this, business entity also sold A range
of Carrefour's products. Morisons is the big competitor of Ocado. Other competitors are Tesco,
Argos, sainsbury , Waitrose etc.
Background of the country
Belgium is federal state which consists of three different cultures. Changes ion political
as well as economic factors of Neighboring countries have direct as well as significant effect on
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Belgium. The modern, private enterprise economy of Belgium has capitalized on its central
geographic location, highly developed transport network, and diversified industrial and
commercial base. Nation has few natural resources which can be utilized by Ocado for further
expansion of business. Economy of Belgium is completely dependent on world trade. As
Belgium is located at the central geographical locations , Ocado can explore and capture various
trade advantages. The nation also consist of skilled as well as productive workforce which can be
hired by Ocado for executing various business operations. Beligium is the member of Benelux.
The major feature of country is that there is equal distribution of income, this factor is to be
considered as it have direct effect on the profitability ore financial performance of company.
There was decline in foreign direct investment and economic growth during 2000 to
2008. The decrease in FDI and economic growth has led to the increase in employment rate
during 2009 (Belgium Economy :Poipulation, GDP, inflation, business trade and FDI, 2018.).
Belgium per capita GDP ranks among the world's highest. The inflation rate is below 2 percent
during the period of 1980 to 2017 which is positive in context of expansion of business.
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REFERENCES
Books and Journals
Online :
Belgium Economy :Poipulation, GDP, inflation, business trade and FDI, 2018.
[Online].Available through: <https://www.heritage.org/index/country/belgium>.
Ocado group , 2018. [Online].Available through: <http://www.ocadogroup.com/>
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