Global Business Environment: Factors, Strategies, and Market Influence on Deliveroo

This report analyses the impact of globalisation on Deliveroo, a food delivery company, and discusses the factors that drive globalisation, strategies associated with the operating environment, global market influence, and the influence of globalisation on decision making. It also discusses the challenges faced by Deliveroo and the McKinsey 7S model. The report highlights the importance of understanding customer preferences and modifying operations accordingly to achieve growth and increase brand value.

Global Business
Environment

Table of Contents
INTRODUCTION......................................................................................................................3
LO1 The factors that drive globalisation in the company......................................................3
LO2 Strategies which are associated with the operating environment..................................4
LO3 Global market influence on the company......................................................................7
LO4 Influence of globalisation on the decision making of the organisation.........................8
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11

INTRODUCTION
Globalisation has a huge impact on the growth of the company. As due to this the
company can export and import the materials or goods required by them. It increases the
standard of living of the people of the country. It makes the business easy to carry in different
countries. Deliveroo is a food delivery company in which the food and goods are delivered on
the order. It helps the company to order the food online this increases the sales of the shops
and even the commission of the company increases. In this report the key factors which
impact the globalisation process will be analysed (Radović-Marković, Salamzadeh and
Vujičić, 2019). It will also include the strategics which are used by the company to work in
the global environment across the world. Evaluating the influence of globalisation on the
culture and growth of the company. Further, it will analyse the influence in decision making
by the management.
LO1 The factors that drive globalisation in the company.
Globalization as the word suggests means being global. Being global means increased
scope of trade. Globalization, if to be understand in simpler words, means global trade of
goods or services across the boundary of country. It means going beyond the boundaries for
trade of goods or services, or movement of people across the boundary, or flow of investment
or other information. It is a very good way of increasing the scope of any business. If any
business is planning on expanding it can definitely give a thought about globalization.
Globalization gives a chance to increase the number of customers.
Deliveroo can also gain a competitive edge over its rivals by globalization as it can
also import raw materials which are available at cheap rates than domestic prices (Brenner,
2018). Through this tariffs have been reduced or removed totally for a lot of products. It also
helps in the generation of new employment opportunities. A lot of factors influence the
concept of globalization. In other words globalization is driven by a lot of factors. Let’ s
understand these factors in a more detailed way-
Trade and Investment opportunities – Globalization leads to increase in trade and
investment opportunities. It helps domestic businesses, Deliveroo by providing them with the
concept of globalization where these businesses can grow themselves by facilitating
movement of goods or services or labour or technology across the domestic boundaries. It
also gives rise to foreign investment in domestic country. Deliveroo can also raise funds
internationally as economy of different countries will depend on each other in terms of lack
of resources required, cheap labour or cheap price of goods or services. Deliveroo can also
benefit by producing goods at low rates in domestic markets and then selling them at higher

rates internationally. Even the company can invest in foreign ventures , bonds providing
interest at higher rates.
Technological advancements – As far as technological advancements are concerned,
globalization is mostly driven by this factor. Costs of transportation can be reduced with the
help of technology and communication can be facilitated easily hence leads to increase in
exports and imports. Technology has also facilitated doing transactions at more fast speed.
Now buyers and sellers can communicate with each other any time from any part of the
globe.
Globalization costs - Even if globalisation has a lot of benefits it involves a lot of costs like
cost of transportation and cost of communication. It also involves a lot of taxes like tariff,
excise duty. There should be enough benefits to offset the cost incurred for doing trade
internationally. But it also helps in reducing cost like labour can be imported at a lower rate
and Deliveroo can also import raw materials available at a rate which is lower than the rate
prevailing in the domestic market. The company can also sell its goods or services at a rate
higher than the rate prevailing in the domestic market which will also provide company with
the benefit of recovery of costs easily.
Market conditions – Different market conditions exist in different parts of the world.
Deliveroo, if plans on globalization, needs to evaluate the conditions existing in the
international market (Janjić, Bogićević and Krstić, 2019). It needs to act as per the conditions
and preferences existing in the market. Additionally customer needs also differ from place to
place. This is also to be considered while going global. Deliveroo needs to modify its strategy
according to customer needs, wants and preferences so that it can mark its position in the
eyes of customers.
Competitive environment – Globalization has led to increase in the competition in the
market. Through globalization foreign ventures got an easy access to the international
markets. It gave a huge rise to the competitive world as there are more competitors present in
the market than before. Competition exists in every factor like price, cost , technology
adaption, labour cost. Before it was difficult to get goods not available in domestic market
but now with the help of globalization it has become easier to get all the goods. Customers
now a days also have a wide variety of choices because of globalization . It is very important
for the company to provide products with high quality but at a lower prices.
LO2 Strategies which are associated with the operating environment
Deliveroo is one of the leading multi - national company in the world. This company
is engaged in the delivery of food business through online technology. The company majorly

operates from UK. It operates worldwide across two hundred locations. Some of its
operations are located in United Kingdom, Australia, Hong Kong, Italy, Ireland, Kuwait,
Arab Emirates. The company has developed its own app from where customers can order
food online and then some employee transports the food to the customer as per the order on
bicycle or motorcycle. It has also collaborated with some big restaurants which are registered
on its app. It has many subsidiaries working in different fields or segments like food delivery,
network of ghost kitchens, grocery delivery.
Deliveroo is looking for the expansion or globalization of its grocery delivery
segment. The company is planning to target new countries and cities in order to expand its
business. For this purpose it has planned to increase its speed of delivery especially in
grocery sector. The new goal of company is to provide delivery on time or on demand for
retailers, customers and wholesalers (Kasemsap, 2018). The company focuses on increasing
grocery sector in line with the increasing demand of grocery products.
Before it used to collaborate with big supermarkets but now it is also planning to
reach out to small markets for fulfilling its goal of speedy delivery. The demand for the
company especially rose after the covid pandemic as people were not able to visit restaurants
physically. Many investors started investing in the company. This was a good sign for the
company to go for the expansion.
Now let’s analyse the PESTLE framework company is operating in and its impact on
company’s international or globalization strategy –
Political – National governments are directed by WHO to regulate food advertising.
Minimum wage claims are to be investigate by government of Australia. Deliveroo needs to
consider this.
Economical – After the covid pandemic the company has great opportunities of expanding its
business as of now people are more used to or let’s say they prefer ordering online and eating
at home rather than going to restaurants.
Social – As it was seen earlier customers have made it a trend or habit of ordering online it
can be used by the company in its own favour.
Technological – There are many technological advancements available in every sector or
industry. For instance one of the technology of delivering food via drones is becoming very
popular (Hacioglu, 2019). It is very helpful for the company as it can use this in case of
absence of manpower for delivering food.

Legal – Company has to comply with all the rules and regulations and laws applicable on the
food sector. Deliveroo needs to comply with the UK Food Safety and Hygiene Act. The
company also needs to comply with the laws applicable in every country it is operating.
Environmental – The company needs to take care of the environment while delivering food.
One of the strong point of company is that it delivers food on bicycle which helps in less
pollution.
Deliveroo has to face many challenges and complexities while operating
internationally. The company has a lot of opportunities to grab while working internationally.
Obviously one of the biggest advantage is increased scope of customers. But at the same time
company has to face the challenge of diversity of different countries. It needs to modify its
operations in accordance with the culture of respective countries. One of the best example of
Deliveroo failing in the Germany was on account of many reasons (Wei, Thurasamy and
Popa, 2018). Some of the reasons are as follows –
German people do not prefer to spend huge amount of money on food in comparison to other
countries which limits the customer reach of Deliveroo. German people go for light breakfast,
heavy lunch and no dinner. They are very private. They prefer to have their lunch with
friends and family.
Here are some challenges faced by Deliveroo –
 The company has to face various challenges regarding the pricing of food. It can not
charge the same price applicable in one country from the other country as customer
needs and preferences change in respect of different countries.
 Another issue the company can face while going for global expansion is finding right
people for the purpose of delivery. Sometimes it is very difficult to find appropriate
employee for delivering the food as it cannot focus much on recruitment. Later on
only these people can become responsible for failing the business either because of
late delivery or bad behaviour (Zámborský, 2020). The company has to give initial
training to employees on how to deliver food properly but cannot evaluate the
performance of each employee at least not before final food delivery.
 The company has to find and get different delivery partners and restaurants registered
on their app. This is not a small task as it may look. Finding right people with good
brand image is very important as customers are very well aware of the image of the
restaurants. Once customers have a bad interface with the app they never prefer to
visit the app again especially when there is high competition in the market.
The company needs to focus on solutions as every business faces challenges –

 There should be well managed customer support team.
 The app of the company should be customer friendly.
 There should be proper feedback system available.
 The company should take into consideration customer’s preferences of restaurants.
LO3 Global market influence on the company
Due to globalisation the products can be sold and services can be rendered in different
countries at low prices. Due to this the existing business of the country get affected as they
have to reduce the prices of the services. As Deliveroo is into delivery services of online food
orders. As the company has opened business over various cities and countries. Due to which
the revenue has increased but it has a impact on the company. As to run the business in
different places the preferences of the customers to be understood.
The company has to work on its services and staff to increase its brand value. So that
it can earn more profit and get economies of scale (Hamilton and Webster, 2018). The
theoretical model through with the influence of the company is explained is given below:
McKinsey 7S Model
It is the planning tool which help the company to analyse the internal environment The 7S are
elucidated below:
Structure- In this the company work on the structure of the company. As to organise the
departments and teams. So that accordingly the work can be delegated. And based on all this
the information can flow in the company and decision can be made. Accordingly the
responsibilities and authority of the work can be assigned to the workers. It refers to the
organisational chart of the company. It is a framework of the structure of the company.
Strategy- The company uses various strategies to grow in the global market. So it have to
make different strategies based on the global environment (Akhtar and Sushil, 2018). As it
influence the operations of the company. So it have to make and maintain the strategies to
grow in the global market. As the competition is more and to take advantage over them it is
necessary. It help to make a plan which help to achieve the competitive advantage in the
market and successfully compete in the market. In this the company’s vision, mission and
value statement are created this help to analyse and achieve its goal accordingly.
Systems- Various systems are made to complete the work. As the goals and daily activities to
achieve them are made. With proper system the company can grow its business and increase
its brand value. In this the processes and procedures which are followed by the company to
achieve its goals and how decisions are made in the company based on various situations.

Shared Values- The core values of the organisation are reflected in the work which is
performed by the employees. Due to the shared values the employees get motivated to work
more for the company (Lifintsev, Fleșeriu and Wellbrock, 2019). It keeps them motivated and
happy as they think as a part of the company.
Style- In this the leadership styles are chosen by the company. As Deliveroo is a
multinational company and even has established business worldwide (Bhasin and Garg,
2020). So it uses democratic leadership technique. In this the employees are free to
communicate and can feel free to discuss about the issues caused by them.
Staff- The success of the company is dependent wholly on its staff. As they are the one who
help the company to achieve its growth and goals in the long run. If the staff is not happy
then it can cause huge impact and influence the company’s environment which can lead to
non-fulfilment of the goals and objectives of the company. It also include the recruitment,
training and motivation through which the employees can work more and increase the
revenue of the company and reduce the cost of services which are to be rendered.
Skills- Nowadays to expand the business globally the employees must have appropriate skills
and competency level. So that it can compete with the competitors present in the existing
market. These are also known as the skills or abilities of the employees which help to
perform the task and work effectively.
Apart from this there are other factors which influence the growth of the business in
the global environment. Due to the environment changes and preferences of the customers
company have to change the rules and policies regarding them. As it is not necessary that
same business can be carried successfully across the whole world. So for the company there
are different matters on which it have to think before. As to beat the existing company and
brand value of different companies carrying same work is difficult. As it requires innovative
and new skills to expand the business. And even it requires the marketing strategies to
influence the customers to grow the customer base and expand its business in other country.
LO4 Influence of globalisation on the decision making of the organisation
As due to globalisation businesses are affected very much. As it influence the decision
of the company as based on the economy and market conditions the decisions are to be taken.
As to establish a new business the organisation has to make the projections so that to identify
where it would be viable for it to do business from that country. As based on the
technological advancement the decisions are to be taken. As if the customer requirement for
Deliveroo is less than it is of no use to setup the business in that country or place.

As the business carried globally have to look on the global environment which is
uncertain. As it influence the growth and the decision of the company. As this is very
important to be successful. To work in the global environment the manager of the business
has to find out that the technology, transportation, communication and the environment are
appropriate to operate in the market (Bruijl and Gerard, 2018).
Otherwise, it would result in the loss for the company. As the global environment is
uncertain so the company should make proactive decisions. As if there is delay in the
decision making then it would lead in destruction of the business. As there are other factors
also which influence the decision making which includes the political and legal environment.
To setup the business globally the rules and regulations of that country should be followed
otherwise the business would not be able to setup.
Apart from this the existing competitors also affect the company. As their may be
existing companies who would already have their brand value or huge market share. Based
on all these situation the company make decision regarding the new venture. As due to the
problems faced by the domestic market the government put some restrictions on the
globalisation. Apart from this there is a treat among the existing companies.
Even the company’s decisions are influenced because of the expenses. As they have
to incur more investment to establish the business. And to attract and influence the customer
it has to keep its price low and quality of the product or services rendered good. To compete
in the competitive market. Even the company uses Ansoff’s strategy to determine whether to
globalise its business based on this the decision are made.
Company require data to make decision regarding globalisation. As diversity has a
huge benefit on the company. Due to it the resources are used more effectively and in better
way. To earn more revenue and expand the business globally the decisions are to be made
keeping in mind all the conditions and situations which can affect it. As according to the
requirements of the customers the products and services are to be modified. It is not
necessary that everywhere the same can be provided or rendered.
While making decisions the business environment and the ethical requirements are to
be kept in mind. Due to more branches the decentralised will increase and accordingly the
delegation power will be increased. It have to keep vast picture to earn more profit. Due to
increase in employees it should keep proper check. As they should use different strategies to
motivate the employees. The different leadership strategies should be followed by the
company depending on the need. To motivate the employees the company provide regular

feedback so that the work can be carried effectively and it reduces the cost which is to be
incurred.
In case of developing countries it is very much difficult as the economic condition
there is very much complex. Due to which the decisions are changed and remeasured
continuously. As the social factor also influence the company (Laszlo, Cooperrider and Fry,
2020). The people in the society want their needs to be fulfilled and the resources which are
used by the company it should further help or keep the environment clean. Based on the
decisions taken by the manager it will be determined whether the company will survive in the
long run or it have to close its business.
It should even gather the data and information regarding the growth of the company
and its requirement. As based on this the company can make judgements regarding the
profitability and the growth of the business. As crucial decisions can be made based on the
earlier data as more due to more information it can be made correctly.
CONCLUSION
In this report it can be concluded that the factors which influence the globalisation. As
with the help of PESTEL Analysis it can be concluded that all the external factors have huge
impact on it. As due to political and legal factors the globalisation is affected as based on the
rules and regulations only the company can be setup. The strategic complexities also have
impact on the global environment as due to which their may be decrease in the customer base
and revenue of the company. It can also be concluded that the culture and structure of the
company are also influenced due to the global market operation. As due to different culture
and needs of the customers Deliveroo has to keep in mind the needs so that it can operate in
different culture as well. Lastly, it can be concluded that the decisions of the company are
impacted due to the global environment. As technology has a huge impact on the growth and
decision of the company due to which the company has to make different strategies to grow
in the market.

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