Analyzing the Impact of Macro Environment on Deliveroo

Business Strategy

INTRODUCTION
Business strategy is a course of action which assists Organisation in achieving its goals and
objectives. It is a process of taking decision to accomplish goals and gain competitive advantage
in Market. Business strategy is considered as backbone of Company as it is the form of roadmap
which provides direction to the desired goals. If there is any fault in roadmap, the organisation
might face heavy loss in the crowd of overwhelming competitors (Baumgartner and
Mangematin, 2019). When a business is established with an objective and goals it is necessary to
develop a strategy to achieve it with effective and efficient manner. There are three level of
business strategy which includes corporate level, Business level and Functional level. The report
conducts an analysis on macro environment which create an impact on Organisation and also
analyse its internal environment and capabilities (Browne and et. al., 2018). Porter’s five forces
model is also applied to gain the Outcomes of analyses in Market sector. In this project, various
theories, models and concepts will be applied to interpret and devise strategic planning for
Company. The Chosen Organisation for conducting this report is Deliveroo, it is a food delivery
firm which was founded in London.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of Macro Environment on
Deliveroo.
Deliveroo is a platform which provides online food delivery services to their customers;
the company operates in more than two hundred locations across UK. The Organisation was
established in 2013 by Greg Orlowski and Will Shu in London. They generate revenue by
charging a commission fee from restaurant and per order fee from customers. By using apps and
website, customers order their food then a delivery boy delivers orders to them (Cao and et. al.,
2019). The Organisation Introduced Deliveroo plus which provides unlimited free delivery to
people in UK. For analysing the impact and influence of Macro Environment on Deliveroo
Pestle analysis is best tool. Pestle analysis is a management tool which shapes the macro
business environment including political, economical, social, technological, environmental and
legal factors. The Company operates in dynamic and complex environment characterised by
growing environmental activism, technological changes, regulatory changes, collective social
trends and evolving legal system.

Application of Pestle to Deliveroo
Political Factors
The political factor creates a great impact on the profitability and long term sustainability
of Deliveroo. The presence of Company in different international stages increases their
sensitivity to change in political environment of the Counties in which they are operating their
business. When an organisation operates their business globally to get successful in dynamic
international business environment it is important to diversify the systematic risks. Deliveroo
need to consider various political factors which can influence the strategic planning process. The
political factors which could create an impact on Deliveroo are Political stability, Changing
policies, governance system, Corruption, taxation and intellectual property protection. When
there is high political stability in Country it provides friendly and stable business environment
which helps in predicting market growth trends (Cosenz and Noto, 2018). A Political chaos
influences the investors and harms the trust of stakeholder in economic. Frequent changes in
policies of government create an impact on business performance by increase in environment
uncertainty. The Company must understand the current trends in country’s political scenario as
when government change it may alters the priorities of government and focus on development of
different industries. The instability and tension in global political environment can influence the
growth and reduce the opportunities of growth of Deliveroo. The Organisation should analyse by
environment activist, worker union and pressure groups as it helps in making the policy. The
taxation can also influence the profitability of Company as when they enter in country having
high taxation level it automatically affect its profit margin (Cosenz, Rodrigues and Rosati, 2020).
Economical Factors
The Company must understand the economic factors like market conditions, saving rates,
Foreign exchange rates, labour market conditions and inflation rate as these are the elements
which determine the economic environment of Country. When an organisation knows about the
economic factors they can easily find out the growth trajectory of Enterprise. The performance of
Company directly gets influence by economic development If Deliveroo thinks to expand their
business it is necessary to know about the industry lifecycle stage. The GDP growth rate helps in
determining organisation’s ability to achieve its long term growth strategies. The demand and
supply of labour determines the supply of skilled employees and wages rate (Drobyazko and et.