Global Business Environment of Deliveroo: Opportunities and Challenges

This report analyses the global business environment of Deliveroo, a UK-based food delivery organisation, and evaluates the key factors that drive global trade and commerce. It also critically evaluates the impact of globalisation on the organisational governance, leadership, structure, culture, and functions. The report further explains the complexity of various strategic challenges faced by the organisation in the global environment.

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Analyse the various key factors such as cost, market, competition as well as environment that
drive the globe trade as well as commerce.........................................................................................3
M1 Critically analyse the impact of the key factors upon the global business environment in terms
of benefits as well as challenges........................................................................................................4
TASK 2.................................................................................................................................................5
P2/M2 Explain the complexity of various strategic challenges that are faced by the organisation
when it operates in the global environment.......................................................................................5
D1 Critically evaluate the global business environment along with the opportunities and challenges
that are faced by the organisation......................................................................................................6
TASK 3.................................................................................................................................................6
P3 Evaluate the influences of globalisation on the organisational governance and leadership,
structure, culture as well as functions................................................................................................6
P4 Evaluate the influences of the ethical and sustainable globalisation on organisational functions. 7
M3 Critically evaluate the global market influences in application to appropriate theories as models
that relate to organisational structure and culture..............................................................................8
TASK 4.................................................................................................................................................9
P5 Evaluate the various ways of decision making that can effectively work in the global context....9
P6 Determine as well as articulate the various routes to internationalisation that can be adopted by
the organisation which includes its key barriers................................................................................9
M4 Critically evaluate the key barriers in International business also recommend ways to overcome
them...................................................................................................................................................9
D2 Suggest the strategies that can be adopted by organisations to adapt to the organisational
structure as well as decision making process.....................................................................................9
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
The global business environment is referred as the environment that is different in
various countries and also the factors of the home environment tend to differ from the global
environment for a specific organisation. The global business environment is responsible for
influencing the process of decision making an aspect of the resources on the basis of their
usage utility and capabilities. There are basically four components of global business
environment namely the forces of globalisation, the international business environment,
international firm management as well as various national business environments. The global
business environment comprises of broad factors that have an impact across the globe and
they are beyond the control of any community or nation as well.
Deliveroo is a UK based food delivery organisation that was founded in the year
2013. The founders of the organisation are will shu and Greg Orlowski at London. at present
the organisation is operating in across 200 locations in the countries of the United Kingdom.
The various locations of the organisation are France, Belgium, Netherlands, Australia, Italy,
Singapore, etc. The report revolves around the concept of Global Business environment of
Deliveroo which is a food delivery organisation.
TASK 1
P1 Analyse the various key factors such as cost, market, competition as well as environment
that drive the globe trade as well as commerce.
It is very important for the organisations such as deliveroo to to analyse various
aspects of globalisation that are helpful in global trade and commerce. There are various
factors that influence the service as well as competition in the industry and in order to
maximize the profits from the global operations it is very important for the organisation to to
analyse the key factors.
The various factors that have an impact over the global trade as well as global commerce of
Deliveroo have been discussed below.
 Cost- cost plays a very crucial role in a business. Cost can be referred to to the cost
incurred in order to fulfil the order along with the delivery cost as well as the cost
involved in existing business resources in order to cope with the dynamic demands of
the market. Deliveroo is a food delivery business that has been set up ktu to satisfy the
major requirements of the modern age. The reason behind the low cost is that
organisation has hired low-cost workers and it is not the technology that has helped
deliveroo to minimise its cost and deliver profits.
 Market- deliveroo is presently available in more than 50 countries 50 cities worldwide
and has its ties with over 6000 restaurants for delivering food to its customers. The
market plays the crucial role in global trade of an organisation. It is expected that the
global online food delivery services market has a probability of seeking rise in the

market. This will enhance the opportunity e for deliveroo to and its market share and
have better profits in future.
 Competitors- do competitors have a huge impact over a specific business. Similarly
deliveroo also has various competitors to be very specific just eat, grubhub and Uber
eats are some of its competitors which organisation needs to look upon. The
organisation needs to you have a competitive advantage in the market so that the
impact of the competitors on the market share and market growth of deliveroo is
negligible. Deliveroo has been able to to gain the competitive advantage in the online
food delivery market through its various resources. It has been observed that the
customer service of deliveroo is a competitive advantage to the business as
reorganization aims to respond quickly to its customer concerns and demands. The
data driven decision making process is one such resource for the organisation.
 Environment- Deliveroo has made various efforts in order to operate environment
friendly food delivery business. The organisation has aim has to adapt various
compostable biodegradable and recyclable options and also it has made easier for its
partners to choose packaging that is environment friendly. This kind of environment
friendly effort tend to have a positive impact upon the business as it is already
acquainted that with increase in food delivery options increases the carbon dioxide
emissions as well. Hence, steps taken by deliveroo towards environment sustainability
tend to have a positive impact over the business of deliveroo.
M1 Critically analyse the impact of the key factors upon the global business environment in
terms of benefits as well as challenges.
The impact of various key factors upon the global business environment has been discussed
with the help of PESTLE analysis. The PESTLE analysis of Deliveroo is as follows-
 Political factors- factors have a huge impact over the business of delivery. The
government of United Kingdom has using the immigration rules that has allowed
migration of chefs in order to meet the demands of the restaurants and the food
service organisations. The government has also monitored the employment practices
of various online food delivery platforms and the government has strictly stated that
organisations like deliveroo must cope with the minimum wage requirement for
payment to the workers or employees.
 Economic factors- there have been various negotiations of Britain to leave the
European Union hence deliveroo has been facing a hard time in order to compete with
the small pool of workers. This has left a huge impact over the food industry and so
the impact of increasing cost have been dumped on to the customers.
 Social factors- the social factors also have a huge impact over the food delivery
organisation like deliveroo. The Brexit has caused a lot of workers to leave the United
Kingdom and hence deliveroo has been focusing upon hiring new workforce to meet
the demands of the market. However delivery has been facing a crisis as the new
workers on are not willing to join the organisation due to its pay policies. Another
social factor that has been impacting delivery is there low safety standards as the

organisation has failed to comply with the health and safety training along with food
and road safety.
 Technological factors- another factor that has an impact over the functioning of
delivery is technological factors. It has been observed that innovation in the
technology has brought evolution in various industries and so has the smartphone lead
to a positive impact on the profits of deliveroo. The online food service delivery has
use dependency upon technological factors as people have been or ordering through
their mobile smartphones. Also so the introduction of various customised apps has
allowed deliveroo to higher low maintenance workforce which can be easily
communicated it has led to cost reduction for the organisation.
 Legal factors- legal factors also have used impact over deliveroo. It has been observed
that deliveroo has been facing lawsuits regarding discrimination which various
employees as the organisation had failed to provide a minimum wage to its
employees. Also so it has been stated that deliveroo has been preventing its
employees from joining unions and gaining the rights of the workers. This shows that
deliveroo has not been of string protection to its workers which has been highly
criticized in the market and has a negative impact over the organisation.
 Environmental factors- the environment factors also have a huge impact over the
business of deliveroo. Deliveroo has been emphasising upon use of bicycles in order
to operate in an environment friendly manner. This has led to reduction in the
pollution as well as conjunctions in comparison to the motor vehicles that can be used
for delivery. The organisation aims to work with various European unions and helps
in developing and communicating the initiatives to support various businesses along
with the impacts of the climate changes in the region. These efforts tend to have a
positive impact over the organisation.
TASK 2
P2/M2 Explain the complexity of various strategic challenges that are faced by the
organisation when it operates in the global environment.
The various strategic challenges that are being faced by Deliveroo have been
discussed below.
 Shifting customer preferences- there are various challenges faced by an online food
delivery organisation as the ultimate aim of the food delivery service is to expand its
market share through the best possible of drinks to its customers at the least possible
cost. Deliveroo has witnessed food delivery market where the marketing game has
been elevated at the level where the customers are spoilt in terms of choices and also
the competition has rose to a Great level.
 Unstable market prices- another challenge that has been witnessed by deliveroo is of
unstable market prices. it is very understood that the customers base of any
organisation is highly volatile and so is the case of food cost as well. Various factors
that affect the prices in the food industry which can tie at times not be tracked and
does the right pricing strategy cannot be decided by the organisation. It is a challenge

for deliveroo to focus upon adaptation of offensive or defensive pricing strategies
along with the inflation as well as rising revenue deficit of their partner organisations.
 Adherence with food quality standards- it is a challenge for delivery to adhere food
quality standards. It has been observed that there have been huge demand of online
orders and offering food delivery from restaurants that are far away from the
customers is a hectic task while complying with the quality to offer the customers
from the delivery partners. The difference between the food offered in the restaurant
premises and the food that is being delivered to the customers should do steps tends to
create a loophole in the operations of food delivery organisation.
 Managing customer expectations- another big challenge for delivery is to manage the
customer expectations. It does not matter how big market or and organisation is, it is
very difficult for the organisation to satisfy the needs of its customers. Also it is not
just the duty of the delivery partners but also the people were working at the origin as
the restaurant staff to keep in mind the customer expectations so that they can be
fulfilled. It can be analysed the reason behind the challenge is the gap between the
delivery partners and the restaurant owners which creates a loophole to meet the
customer expectations.
D1 Critically evaluate the global business environment along with the opportunities and
challenges that are faced by the organisation.
It can be evaluated that Deliveroo has a global business environment that has been
blessed with various opportunities and sideways have various threats for the organisation as
well. The various opportunities in the global business environment of Deliveroo are the
technological advancements as well as political factors which involves immigration policies.
The various challenges that can be faced by the food delivery organisation are rigidity
regarding the minimum wages law along with the Brexit.
TASK 3
P3 Evaluate the influences of globalisation on the organisational governance and leadership,
structure, culture as well as functions.
Globalisation tends to have a huge impact on almost every aspect of the business. In
the techno-savvy era has made the communication within the organisation more efficient that
has helped the blind cultures where in the organisations have changed their business
landscape as well. With all these changes they have been various effects on the planning
process of the organisation leadership and structure as well. Globalisation has affected the
business in various manners. Also globalisation has influence over various aspects of
business.
Influence of globalisation on leadership
Leadership is highly influenced factor of an organisation which is affected by globalisation as
well. The organisations have different style of leadership which are followed by different

leaders at the organisation. Deliveroo tends to follow participative leadership where in the
employees are involved in the decision-making process and they are ask for suggestions and
recommendations in order to accomplish the goals of the organisation in an effective manner.
In future if deliveroo expands to a different country under management follows a different
leadership style it tends to have impact on the performance of the organisation. Hence
globalisation has a huge impact on leadership.
Influence of globalisation on structure
Structure tends to have a huge impact on an organisation the reason being that the
organisation structure is basically the way in which the decisions or information flow in an
organisation. An organisation can either follow a vertical structure or flat structure and
various others to choose from. Organisational structures have their significance in their own
way. The organisational structure followed by Deliveroo is Matrix organisational structure.
As matrix organisational structure is not popular and difficult to follow, When deliveroo
plans to expand his business overseas might follow other organisation structure which may
have an impact over the business performance and business decision making processes.
Hence it can be analysed that globalisation has an influence upon the organisational structure
as well.
Influence of globalisation on culture
Culture is basically referred to the belief values as well as principles that are maintained by
the members or employees of the organisation. At Deliveroo the culture of the organisation is
to provide best quality products in order to satisfy the customer needs and wants. Similarly, if
deliveroo plans to expand in other country that the management of the organisation follows a
different cultures it will have an impact upon the performance of the organisation as well as
its image. Hence globalization has an influence upon culture.
P4 Evaluate the influences of the ethical and sustainable globalisation on organisational
functions.
Ethics is referred to a set of rules that are followed in an organisation and for the
monitored along with certain approaches. It can be analysed that before an organisation
comes to a decision the organisation considers its ethics in accordance with the decision taken
in the organisation. It has been observed that the ethical decision of an organisation tends to
have an impact upon the reputation of the brand image the firm. Thanks it is very important
for the organisation to consider the ethics in order to make ethical decisions in the
organisation so that the brand is sustained in the market. Sustainability is a concept that States
utilisation of resources of the organisation in a manner to preserve them for future as well. the

sustainable globalisation has a huge impact over the various functions of an organisation. The
impact of sustainable and ethnic globalisation on the organisational function of deliveroo has
been discussed below.
 Human resource department- the human resource management of deliveroo tense to
experience various complexities that are an impact of globalisation. The reason
behind the complexities upon the organisational function is because of the cultural
differences that are caused due to globalisation. Globalisation can lead to commitment
issues which are created among various employees and employers. The human
resource management faces various challenges in order to work in a biased free
manner. Various functions performed by the Human resource department of deliveroo
are hiring recruiting promoting as well as compensation of the workers. The ethics of
globalisation along with sustainability tends to impose importance of avoiding various
discriminations on the basis of gender along with child labour and harassment at the
workplace.
 Sales and Marketing department- it can be considered that rise in ethical conflicts due
to the various needs and wants from different customers. It has been observed that
sales and marketing departments tends to experience a great amount of ethical issues
that take place due to marketing policies that are communicated with the customers
along with the pricing and distribution policies. due to ethical and sustainable
globalisation deliveroo aims to have a transparent service in order to provide a
information to the customers regarding the products.
 Finance department- the finance department of an organisation has a crucial role to
play. In order to sustain an organisation it is very important for the organisation to
have a good financial stability in long run. Globalisation tends to have a direct impact
upon the financial function of the organisations. Similarly at deliveroo the finance
departments should engage in ethical practices which include fat reading for various
mutual agreements and contracts. The good ethics tends to suggest that the finance
department ensures that taxes are being paid in a fair and punctual manner also so it
ensures that there are no objections in internal as well as external audits. The finance
department of deliveroo must make sure that they do not get into intentional
misleading financial analysis which can lead to do a negative impact over the image
of the organisation.
M3 Critically evaluate the global market influences in application to appropriate theories as
models that relate to organisational structure and culture.
The global market tends to have a huge impact upon the operational strategies and
function of Deliveroo. The organisational structure that is being followed at Deliveroo is
Matrix organisational structure which is very complex structure in comparison to the
functional as well as departmental organisational structure. It can be analysed that if the new
branch due to business expansion might switch the organisational structure which will have
an impact over the business performance. Thus it can be said that organisational structure is
influenced by the globalisation. Deliveroo tends to focus upon the culture and its emphasis is
to provide best quality products in order to satisfy the customer needs and wants. The

business expansion might lead to a change in the culture of the organisation as well. Hence,
globalisation tends to have an impact over Culture of the organisation as well.
TASK 4
P5 Evaluate the various ways of decision making that can effectively work in the global
context.
P6 Determine as well as articulate the various routes to internationalisation that can be
adopted by the organisation which includes its key barriers.
M4 Critically evaluate the key barriers in International business also recommend ways to
overcome them.
D2 Suggest the strategies that can be adopted by organisations to adapt to the organisational
structure as well as decision making process.
CONCLUSION

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