Global Business Environment: Analysis of Factors, Challenges, and Impacts on Organizational Operations

This report analyzes the main factors of market, costs, environment, and competition that drive global commerce and trade, along with the complexities of strategic challenges faced by organizations when operating in a global environment. It evaluates the impacts of globalisation on organizational governance, leadership, structures, work culture, and functions, and explores the influences of globalisation on organizational decision making and strategy. The report also covers various methods, processes, and ways in which businesses could adopt in their process of internationalisation along with the barriers and challenges that would be faced by the company.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1 ANALYSIS OF KEY FACTORS THAT DRIVES GLOBALISATION.........................1
P1 Analysis of main factors of market, costs, environment and competition that drives global
commerce and trade. ..............................................................................................................1
M1 Critical analysis of the impacts of key factors upon the global business environment in
terms of benefits and challenges.............................................................................................3
TASK 2 STRATEGIC COMPLEXITIES ASSOCIATED WITH OPERATION IN A GLOBAL
ENVIRONMENT............................................................................................................................3
P2 Complexity of Strategic challenges faced by organisations when operating in a global
environment along with certain examples..............................................................................3
M2 Critical analysis of the strategic challenges in the terms of risk and diversification
strategies and the flow of supply chain..................................................................................5
D1 Critically evaluate the global business environment including the opportunities and
challenges faced by organisation............................................................................................5
TASK 3 EVALUATION OF INFLUENCES OF GLOBAL MARKET ON ORGANISATION'S
OPERATIONS, STRUCTURE, CULTURE AND FUNCTIONS..................................................5
P3 Evaluation of the impacts of globalisation on organisational governance and leadership,
structures, work culture and functions....................................................................................5
P4 Influences of Sustainable and Ethical Globalisation on Organisation's Functions...........7
M3 Critical evaluation of the global market influences in application to the appropriate
theories and models relating to the organisational culture and structure...............................8
TASK 4 Evaluation of the influences of globalisation on the organisational decision making and
strategy.............................................................................................................................................8
P5 Evaluation of methods to improve decision making in a global economy.......................8
P6 Various methods, ways along with challenges of internationalisation faced by an
organisation............................................................................................................................9
M4 The various key barriers to internationalisation of a business and recommendations to
overcome them.....................................................................................................................11

D2 Critique strategies that can be adopted by organisations operating in a global business
environment, with valid and justified recommendations of how they should adapt their
organisational structure and decision making process.........................................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
Globalisation is the process of expansion of things that are produced at a particular place
across the other countries globally. In the process of internationalising globally, all the activities
of business are expanding and opportunities of growth are at maximum. Deliveroo is a restaurant
and online food delivery company established in the year 2013 and it is headquartered at
London, England, UK. The report will analyse the main factors market, costs, business
environment and competition that drive global commerce and trade industry. It will also be
explained about the complexities of strategic challenges that are faced by an organisation when
internationalising along with the help of certain examples. Moreover, the report will evaluate the
impacts of globalisation the organisational culture, governance, leadership, structure and
functions. Further, the report will cover an analysis of various sustainable and ethical business
practices that affects the globalisation on organisational functions. The report will also cover an
evaluation of the different ways in which the organisation could enhance its decision making in
the global economy. At the end the report covers about various methods, processes, ways which
the business could adopt in its process of internationalisation along with the barriers and
challenges that would be faced by the company.
MAIN BODY
The online sales and retail operations are increasing across the globe which will create
bigger opportunities for growth and Deliveroo could potentially become wide scaled in short
time. Global businesses are generating lots of profits along with challenges that impacts the cost
of operations across the business (Abad-Segura and González-Zamar, 2021).
TASK 1 ANALYSIS OF KEY FACTORS THAT DRIVES
GLOBALISATION
P1 Analysis of main factors of market, costs, environment and competition that drives global
commerce and trade.
Internationalisation of the online trade and commerce of an organisation such as
Deliveroo needs to analyse and realise the costs, business environment and competition in the
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external market. The company may be affected by many factors as mentioned above therefore tit
can evaluate them in order to maximise its benefits from the global operations. So, the following
factors are given as under to analyse as per the strategies:
Costs: In the domestic sense, the companies like Deliveroo may only get a little benefits from
their operations. Due to the technological advancements of the e-commerce sector will lead to
the better services and products to the customers (Al-Matari And et. al., 2021). The company will
get through better technological advancements in order to produce its products and services
beyond the national borders at cheaper costs. The reduced cost of operations will lead to the
expansion of restaurants and online trade operations by Deliveroo.
Market: The global market has more number of customers than at a single place or location
could offer. In the domestic country, greater sales revenue from operations are not possible due
to the less amount of buyers and derived lower scale sales. In the global markets, strategy
differentiated and customised service can be offered to the various groups of people and increase
sales. So, the international market is more opportunistic for Deliveroo to expand as a restaurant
and online food delivery business and provide its products and services to different cultures,
income groups etc.
Environment: Environmental impacts of the global market can be easily assessed on the
Deliveroo such as extension of its restaurants and online food delivery operations. The dynamic
regions and countries chosen by the company will enhance its differentiation, strategies, policies
etc. according to the regions (Ali, Xu and Ahmad, 2021). The factors of the environmental
impacts will determine the scope for expanding the services and products offered by Deliveroo.
Therefore, the strategic management has to determine and evaluate the potential environmental
hazards on the operations of the business.
Competition: Deliveroo has to tackle more intense competition across the global market of
restaurant and food delivery services than its domestic market. In the international market more
and more competitors would be involved who may have greater capabilities and resources than
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Deliveroo. Hence, to be more competitive and face the competition strongly from the global
market the company needs to analyse its competitors (Barauskaite and Streimikiene, 2021).
Thus, the cost structure, market competition, market structures, market environment etc.
will determine the scale and extent of global trade and commercial output. Therefore, Deliveroo
should analyse these factors before the internationalisation process.
M1 Critical analysis of the impacts of key factors upon the global business environment in terms
of benefits and challenges
The benefits of the global activities of the company will include scale economies,
technologies and amplification by using vast number of its branches across multiple nations. The
exposure of the company in multiple economies would be for quick and rapid management of the
customers (Belkind, 2021).
TASK 2 STRATEGIC COMPLEXITIES ASSOCIATED WITH
OPERATION IN A GLOBAL ENVIRONMENT
P2 Complexity of Strategic challenges faced by organisations when operating in a global
environment along with certain examples
In order to analyse systematic working and make thinks for expanding the growth for
food service operations analyst for Deliveroo for managing working environment and gain
effective food delivery options which headquartered is in London. There are different strategic
challenges which the company faced while operating at global level. Some of them are related to:
 Entry Fees: Deliveroo is the company at international operations for managing and
exchanging the export fees for different franchising the local business entity. It further
finds difficulties in going international business operations and build in the new
restaurant and food delivery brand in the different intended country for the work based
entity in the business operations (Dörrenbächer and Ellermann, 2021). This challenge is
majorly faced by the company while operating and determine the benefits and challenges
as well for getting equilibrium and make effective global decision like Deliveroo.
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 Legal Framework: The another global challenge which the company faced while
working international business operations is to go and make lots of local and international
business operations through the major challenges and working factors within the business
environment. For example, Deliveroo has start working in different international
boundaries and manage the concept for understanding the retail company's act. It is
further helps in managing working and analysing the challenges in different transactions
and make trade within the country (Jelovac, Ljubojević and Ljubojević, 2021). Besides
all of these issues, the company is able to provide wide range of legal framework and
gain effective knowledge that helps in analysing and working systematically for smooth
the operations and gain foreign country progress.
 Socio-Cultural Difference: In order to established culture Deliveroo, and manage its
own business can be related to work systematically and manage more than one foreign
country in an effective manner. It will further helps in managing the working
environment and cultural strategies to be more local customers and make customer's
oriented to the business operations in the organisation as well (Lartey and et. al., 2021).
The necessity to manage culture similarities to be more adorable in business like global
operations. S, the use of strategic management of the company for managing steps for
learning and provide training in more effective and appropriate culture for operating
business country. Their are different processing needs to complete working and manage
Deliveroo concept to manage the data in more effective and enriching the local culture
orientation.
 Tough Management service: The use of higher implication of the global business that
will helps in managing the companies and make more managerial complexities. There are
different concept and managerial complexities like the challenges in supervision,
direction or face to face orientation in the growth of global business organisation and its
growth. The use of effective business operations are related to work effectively and
manage the possible and longer period of time to manage distance and reach global
marketing in the context of banking regulatory (Miller and et . al., 2021). It further helps
in managing business complexities for considering growth to expand to manage business
to other side of the country to be more effective and global company.
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These challenges are to be faced by the e-commerce and restaurant companies like
Deliveroo to expand their business to the other countries across the globe.
M2 Critical analysis of the strategic challenges in the terms of risk and diversification strategies
and the flow of supply chain
The Deliveroo have the risks of different kinds in the business and in its global
operations, these risks may be strategic or operative. To minimise these risks of international
business the company has to take different dimensions for strategic development in its activities
(Obrecht, 2021). The company should plan its supply chain in the best possible manners with the
detailed study of the risks in the international market.
D1 Critically evaluate the global business environment including the opportunities and
challenges faced by organisation
The Deliveroo faces problems of supply chain management, risk evaluation and dynamic
environment of the international market. In the supply chain management the company needs to
go thorough may cognitive processes across multiple nations to carry its business. The company
needs to evaluate risks across the various markets globally in order to frame best strategies for its
growth.
TASK 3 EVALUATION OF INFLUENCES OF GLOBAL MARKET ON
ORGANISATION'S OPERATIONS, STRUCTURE, CULTURE AND
FUNCTIONS
P3 Evaluation of the impacts of globalisation on organisational governance and leadership,
structures, work culture and functions
Besides the external factors of the business environment of the global e-commerce
companies, internal factors like its operations, work culture, issues, organisational structure,
functions also influences the global business environment. For instance:
Organisational Governance: Previous corporate structure and governance may be appropriate
when a e-commerce business looks forward to expand in the international market (Oni, 2021).
The company should enhance their operating and governance in the strategic and operative
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management. Some of the activities, operations an functions of the company across the
international branch should keep under a new corporate structure. The Deliveroo is managed by
its officials which are governing all the activities of the business. To expand the activities of the
business the managers and owners has to delegate their some of the authority and responsibility
to others to manage their activities across the international branches.
Leadership: Management and the people working in the company are to be highly
knowledgeable, skilled and mannered to be compatible with the international market (Reyneke
and et. al., 2021). Deliveroo would have more sophisticated workforce, people, customers and
partners across the global market therefore the leaders must be more enhanced. The leaders and
the managers needs to be more educated and knowledgeable about the current business
environment and legal systems of the foreign counties in which it is planning to expand.
Deliveroo is managed and owned by Will Shu and Greg Orlowaski with some delegated
authority to managers within the company. The company could easily get advantages by
assessing the requirements of the Leaders that is suitable in the international market.
Structure of Work Culture: New business operations in the online food selling and restaurants
require good cultural structure in order to manage the business across multiple nations (Ruch,
2021). Every factor of the international market would affect the business operations of the
company that is why the company such as Deliveroo should have better cultural learning and
ability to lead better work culture in different situations. Nevertheless, these mentioned key
elements have an important impacts on the global business environment in terms of benefits and
challenges that in other ways. It should be managed by Deliveroo's strategic mangers and
advisors during the process of managing the project knowledge process by the company
leadership.
The company's leadership governs the control board during the operations phase
executing and monitoring and controlling the process operations phase (Škare and Soriano,
2021). Therefore, the Deliveroo's committees board could work by applying strategies, tools and
techniques to reduce, delay or deviate the expenses by smoothing or leveraging methods to enter
international market. The Deliveroo has a matrix management hierarchy that could be sorted out
to carry its global operations across the markets in the world. The company would also be
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affected by the regulatory frameworks and structure of management and leadership that would
influence its entrance in the international market.
Functional Behaviours: The functions of the global business of Deliveroo will be different than
that of its functions in the national or local market. The functions of the company would be more
focused on the operations and cultural performance than the local companies (Stepnov, 2021).
The functions of the global companies will be more strategic focused likely to that of the local
companies . The Deloveroo will have more functions such as export, import, foreign exchange
process, etc. while taking its business at international levels.
So, the global operations of the companies like Deliveroo will impact governance, risks,
functions, organisational structure and other factors of organisational operations.
P4 Influences of Sustainable and Ethical Globalisation on Organisation's Functions
Globalisation is the process of the transferring and creating global presence of the
company or a local body across the multiple nations of the world. The process of the
globalisation has to be more ethical, sustainable to be better for the environment, people as well
as the business.
The ethical approach of the globalisation of Deliveroo in the online food restaurant and
distribution would help in welfare of people and environment of the business when they look
forward to expand to the international market. The ethical and sustainability consideration would
inspire the business to take better ways that are not harmful to the environment and helps in
welfare of people. Thus, ethical ways of globalisation will clear the betterment of the humanity,
environment and the culture across the globe.
Sustainable globalisation of the services and operations of the banking will lead to the
better goodwill and image of the company by its works and operations. Any service or product of
Deliveroo will focus more towards gaining better and long lasting positive impression and grab
more customers. Thus, the evaluation of the ethical and sustainable globalisation of operations by
Deliveroo is important to achieve higher reputation, goodwill and maximum customers.
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M3 Critical evaluation of the global market influences in application to the appropriate theories
and models relating to the organisational culture and structure
The global business strategies will influence on the structural image of the business
operations and the necessity of the reshaping the structure and work culture of the business. The
company could use ADKAR model for influencing and reshaping itself to garner opportunities in
the international market. Awareness, Desire, Knowledge, Ability and Reinforcement could help
the company to work better in the international market. The company could create awareness in
the workforce about their strategies regarding reshaping processes according to the global needs.
The employees are asked for desires about the reshaping measures of the global necessity. The
knowledge of the changing and reshaping methods and strategies to maximise profits can be used
for the purpose of strategic management.
TASK 4 Evaluation of the influences of globalisation on the organisational
decision making and strategy
P5 Evaluation of methods to improve decision making in a global economy
In the global environment, any business can be more sophisticated than domestic market
environment (Verbeke, Hutzschenreuter and Pyasi, 2021). Therefore, the decision making can be
also variant in the nature which may be like mentioned as under:
Major Decision: It is the democratic way of decision making where the companies can take the
operative and strategic decision making based on the major role in the decision process. The
major opinion will be to get the best advantage in the whole process of decision making. The
minor part will be to get the due respect for their contribution in the decision making
effectiveness. Therefore, the major role for the best decision is regarded best in the decision
process.
Logical Thinking: When the decision making process initiates then it involves logical thinking
and critical appraisal of the decisions. There will be more scope for logical thinking in the
foreign market for the greater interest of the online restaurant company. The impacts of logical
thinking will be vital for enhancing the better decisions and best impacts on the business.
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Expert Thinking: When the decision is not viable by the major and logical thinking, the time for
expert thinking will determine the decision end. In global promotion and the operation of the
employees are an expert drivers think in the global decision making process.
P6 Various methods, ways along with challenges of internationalisation faced by an organisation
There are various routes of internationalisation and organisation may adopt on service
offered by the online restaurants like Deliveroo. Let us look at these ways of internationalisation
which are given below:
Global Strategy: It refers to the method of offering the service of the restaurant and online food
service companies like Deliveroo as per the local preference and interest of global scale. This
strategy of the globalisation focuses on the providing the benefits of scale to a business. The
global standard products will be focused in this strategy in order to produce and articulate goods
or services suitable at every place across the globe. Cultural difference, perceptions about the
individuals and available resources are the major barriers the strategy is facing.
 Economies of Scale: Most of the economists today belief that the scale of Manufacturing
Execution System (MES) has become greater in size, amount or degree with minimum
efforts. MES is a data framework or algorithm that interfaces, screen and controls
complex assembling frameworks and information streams on the production line floor.
The principle objective of a MES is to guarantee compelling execution of activities on
production lone. In the terms of expanding the company in international markets the MES
needs to be improved by the Deliveroo to produce and sell its products across the
multinational segments. Many growing nations have their own transnational companies
who work in collaboration with each other in the product creation process.
 Transnational Strategy: In this strategy the company focuses over the generation of
large services rendering keeping the standard of the low cost structure. The face of the
cross-cultural efficiencies could also improve the better aspects in to the process of
globalisation of services in restaurant and online food services. The performance of
human resource management and the latency of the performance are the restrictions and
challenges of the strategies of the globalisation of banking service.
 International Strategy: This strategy focuses on the import and export of the products
and the services of a company beyond the nations in order to expand globally. Licensing,
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franchising or patenting are other mode of expanding into other countries and import or
export the services and products to the other companies.
 Multinational Strategy: With the help of this strategy the online food restaurants like
Delveroo could expand its operations to the different countries with the same strategy of
the functioning. There are millions of barriers like communication issues and trust issues
in the operational units of the companies while maintenance of performance will be
another barrier. The legislation laws, cultures, political, infrastructure, technology,
software and resources availability and employee capability will be another barrier on
multinational strategy.
Barriers
 Containerisation: The costs of shipping the products and services and trade with various
means of transportation river, air, sea, rail, etc. decreased due to the containerisation used
for mass delivery , packaging of products for efficiency gains. The drop in the unit cost of
product delivery in the global markets on the 21st century has helped larger companies
such as Deliveroo. Direct to acquire narrow costs in these commercial global sectors, it is
gradually making questionable windows around the international market.
 Technology: The rapid changes in technology has the changing impacts of technological
innovation of the global business environment has consistently reduced the costs of
transmitting and communicating information. For instance, online electronic signatures,
corporates, social marketing with help of connecting communication with meetings and
conferences. With the introduction of new technology in the external market which are
the key drivers of the innovation and the technology for Deliveroo.
 Differences in Tax Systems: The greatest desires of any organisation is to take
advantage of lower cost of production and reduce the prices of their products and services
offered to the customers with maintaining quality (Westerbeek, 2021). But by taking care
of the quality of product or services variance prices while calculating the Cost
Performance Index (CPI) of earned value and planned value by always observing their
change control process.
 Openness to the international threats: The old types of the non tax guarantees, such as
import permits, currencies, destructive market, terrorism, etc. may be the international
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threats for Deliveroo. The company should critically analyse the impacts of its business
and the international market environment to analyse the chances for growth in various
locations.
M4 The various key barriers to internationalisation of a business and recommendations to
overcome them
The in-depth and wholesome analysis of the operations of Deliveroo in the online
restaurant and food catering business in global scale of HSBC, there are observations and
recommendations for the strategic management of the company. The main barriers identified
were the growth in dynamic international markets, containerisation, global tax differences and
technological divisions that affects food service industry across the globe. It can be
recommended that the company should analyse its internal strengths and opportunities before
taking the business globally.
D2 Critique strategies that can be adopted by organisations operating in a global business
environment, with valid and justified recommendations of how they should adapt their
organisational structure and decision making process
The company should grab the opportunities by the use and analysis of internal strengths
and competencies in the international market. The global operations of the company should be
centralised whole decentralised and is also sometimes expected in some crucial issues. Market
and customer analysis is to be done before going to the international market, to gain appropriate
knowledge and information about the legal and political environment should.
CONCLUSION
The following report had been discussing about the internationalisation and expansion of
the companies which may or may not be bring positive outcomes. The globalisation of the
operations may be faced by the more unexpected challenges in the global business environment.
Moreover the report had been discussing about the strategic decisions, operational management
will have some options of the choices of expansion of scope. Report had also discussed about
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how the companies will get better results from the global companies of the service by a planned
and designed strategy.
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