Global Business Environment: Key Factors, Challenges, and Strategies for Deliveroo

This report analyzes the impact of globalization on Deliveroo's business environment, including key factors such as cost, market, environment, and competition. It also evaluates the strategic challenges faced by the company and provides recommendations for organizational governance and leadership. The report includes a PESTLE analysis of Deliveroo, an evaluation of competition, and recommendations for diversification strategies and supply chain flow.

Global Business Environment
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3

P1: Analysing the key factors of cost, market, environment and competition derived by the
global commerce trade:................................................................................................................3
Pestle analysis of the firm “Deliveroo”:......................................................................................4
Competition in the business of the firm “Deliveroo”:.................................................................5
Critical analyzation of the impacts of the key factors on the global business environment:.......6
Evaluation of the global business environment including the opportunities and challenges for
the business:.................................................................................................................................6
P2: Explaining the complexity of the strategic challenges faced by Deliveroo in a global
environment.................................................................................................................................6
Critically analysing the strategic challenge in the context of risk and the diversification
strategies and the supply chain flow-...........................................................................................7
RECOMMENDATIONS-................................................................................................................7
P3: Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions....................................................................................................8
P4: Evaluate the influences of ethical and sustainable globalization on organizational functions
......................................................................................................................................................9
P5: Evaluate the different ways decision making can work effectively in a global context.....10
P6: Determine and aticulate the various routes to internationalization the organization may
adopt including key barriers.......................................................................................................11
CONCLUSION..............................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Globalization is the process to describe how the trade and technology connected the world and
made it an interdependent place (Djelic and Quack 2018). The global business environment
refers to the environment of the various sovereign countries, with the exogenous factors in the
home environment of the firm and It influences the decision-making on the basis of usage of
resources and capabilities. The report based on the firm “Deliveroo”, a multinational company
operating in the food delivery sector with it head quarter in London. Organization was founded
in 2013 by the will shu and Greg orlowski. The firm operates in over two hundred locations in
the United kingdom, France, Ireland, United Arab Emirates, Kuwait, etc. the firm functions with
around 110000 employees in all. The company was first listed on the London Stock Exchange on
31 march in 2020 with the brand name “Deliveroo holdings plc” (Cant, C., 2019). Further, report
based on the expansion of the firm will be analysing the key factors and complex strategic
challenges faced by the organization by operating in the global environment. The report will also
be covering about cultures and functions as well as the organizational function influencing on the
ethical and sustainable globalization. Under the report the different decision-making and various
routes of the internationalization of the organization will be shown.
MAIN BODY
P1: Analysing the key factors of cost, market, environment and competition derived by the
global commerce trade:
The concept of globalization is the process under which the flow of services, goods, capital,
people, and innovative ideas across the international boundaries increases and the key factors
influencing the globalization of the business are as stated under:
Different levels of economic integrations: this refers to the process of the collaboration under
which two or more of the states defines the geographic area for the reduction of the trade barriers
by protect and do the advancement in the economic goals (Phuc Nguyen and et.al., 2020). The
major types of the economic integrations that the firm will adopt or face are as under: Free trade: the focus of the companies in with the free trade agreement is to increase the
economies of scale and give comparative advantage to the firm by promoting the
economic efficiency.

 Custom unions: the union helps the business by levelling up the competitive fields and
addressing the problem of re-exports in the firm. Under this the capital moves by making
the labour restricted. Common market: services and the capital moves freely in the member countries by
expanding the scale of economies and comparative advantage in the business.
 Economic unions: by creating the economically uniform markets the barriers in between
the trades of the member countries the tariffs are removed. The fiscal and monetary
policies are harmonized and the political integrations are implied in between the
countries.
Trade and investment opportunities: trade and investment will help the business in many ways
as it will work as the powerful engine for the growth and development of the business. The
expansion of the trades of the business will help the business to by participating in the global
network production, created employment, help in spreading the technology, ideas & knowledge
throughout the region and will help in raising incomes (Feng and et.al., 2021). The efforts made
in the expansion of the business will help the business to overcome the challenges and help the
firm to utilize the trades and investments made to achieve the goals of the organization.
Pestle analysis of the firm “Deliveroo”:
Political factors: the factor that influence the operations of the food industry is that the
government of the different countries have regulations on the frame work of the food industry
under the wide regulations. This includes the cleanliness in the kitchens, standardized ways to
storing and transporting the foods, and also working according to the requirements of the labours
in the industry or at the workplace. This helps the business to ensure that the business is serving
good to the consumers.
Economic factors: the increase in the income level of the peoples says out the things that
population have more to spend on the luxuries including foods and beverages. This shows out the
positive effects on the firm that are operating in this line up like the deliveroo (Frederick and
Parappagoudar 2021). The another factor influencing the business of the firm is increase in the
labour cost as income levels are increasing the wages of hiring the employees are also increasing
and this done due to the higher expectations of government regarding the minimum wages this
might sometime give the negative effect on the business of the firm.

Socio culture factors: the relationship of the healthy food and human body is clear nowadays
and people shift on the green and healthy ways to feed up their bodies. This doesn't have
negative or positive effect on the business but the firm have to adopt the healthy ways to be
relevant in the business track. The dietary restrictions also put effect on the business as the
consumers are more aware about their personal health and follow the dietary restrictions. This is
not a bad factor but it influences the firm to work according to the changes that are necessary for
the client's satisfaction.
Technological factors: technological advancement like using the automation technology in the
firm will help the business in making the business operations of the firm easier and efficient. The
organization can use different ways of technologies in the firm like it can include robots in the
firm so that it will help the business in increasing the quality of the business by increasing the
profitability and reduce the human error in the business operations.
Legal factors: ensuring the safety standards in the business is the main measure for the food
industry. The firm receive scores for the rules and regulation of the safety standards followed
like how the food will be prepared, stored and transported. This also includes that how the food
will be cooked and on what temperature. The standard also make ensure that the ingredients use
in cooking should be cleaned properly. So prior to this, businesses need to be extremely careful
in following the standard of safety measure.
Environmental factors: the usage of the meat and other non vegan items in the food industry is
not liked by all in the industry and it is also bad about the environmental repercussions. The use
of meat in the industry is highly problematic way from the environmental point of view. This
resulted in that there are many individuals that are shifting on the green diets. The factor might
provide the business with the negative impact in the long run.
Competition in the business of the firm “Deliveroo”:
The good and healthy market competition in the market provides the firm and the economy of
the Indian markets with the development. Basic economic theory in the globalization of the firm
demonstrate that the organization must compete for the consumers that buys the food product
from the firm and is friendly with the firm (Musacchio and et.al., 2019). It leads with the lowered
prices higher quality of the goods and services, innovation and great variety of the products and
services offered by the firm in the new and developing markets of India. Having the trade
competition and huge market base in India the firm will get numerous benefits as the spending

capacity of the middle class peoples in India is increasing and this is preferred one of the best
destination by the investors to invest over the other major countries. Indian expansion will help
the firm as India have the favourable business environment with good business administrative
setup and attractive foreign policies.
Critical analyzation of the impacts of the key factors on the global business environment:
The major key factors that will impact the business environment of the firm are digital
revolution, international economic integrations, socio culture convergence, cross-border political
influence, financial liberalization, intense competition, increased number of international
businesses and trades, and the further need of the economies for scale, global education providers
(SENTISHCHEVA and ACQUAH 2020).
Evaluation of the global business environment including the opportunities and challenges for the
business:
The business by going in to the global markets of the India will have the numerous benefits on
the firm like increase in the flow of capital, better product availability in low prices, cross-
cultural exchanges, increased income in accordance of the household, and many more. But by
going in to the global markets the challenges that the firm will face by expanding its business in
India are the language barriers, cultural differentiation due to vast numbers of cultures,
management in the global terms, currency exchange rates and inflation rates, and nuances
regarding the foreign policies.
P2: Explaining the complexity of the strategic challenges faced by Deliveroo in a global
environment.
Every company face many challenges throughout its lifetime and this is same with Deliveroo
company. The various strategic challenges faced by the Deliveroo company are as follows-
Meeting consumer expectation -
The consumer always expect its food to be freshly prepared. But when food is ordered
online, it takes a while to reach the ultimate consumers and the food might lose its temperature,
flavour and the freshness. This is not in the case with all food and no food entirely loses its
freshness. But this is the problem that is addressed by the people. This problem is also faced by
the Deliveroo company on regular basis and it can not be solved easily because of the complexity
that it has in it.
Hygiene in food handling-

Consumer today are more concerned about the hygiene of food. Ever since the covid 19
pandemic and the guidelines of WHO people are becoming more conscious of the food hygiene
than before and the same is happening with Deliveroo company. The consumer expects the food
to be delivered to them with all the safety measures and the guidelines which is quite challenging
for the companies like the Deliveroo.
Logistics operations-
It includes problems such as providing on-time delivery to the consumers. Optimal
allocation of the manpower and the resources for the smooth delivery is also included in the
logistics operations and another things is to make ensure that there is no wastage of the
resources. It also includes establishing the delivery routes and training for all the delivery boys
(Gupta, Singh and Gupta, 2021).
Customizing local market-
Food habits of people change with every mile. Thus customizing different plans for the
different localities is the need of every food delivery company. The Deliveroo company also
faces this challenges because it is operations in 800+ countries today. Maintaining different
demands of the different consumer is quite a big task for the company and its very challenging at
the same time (Van Sandt and Thilmany McFadden, 2022).
Critically analysing the strategic challenge in the context of risk and the diversification strategies
and the supply chain flow-
The strategic challenge faced by the Deliveroo company has impacted its market share in recent
years. The cost of raising petrols all over the world and the hygiene requirements of the
consumer after covid-19 is the biggest challenge associated with the Deliveroo. These challenges
do not only have capacity to reduce the market share but can also impact its presence in the
market by reducing profits of the company. There are risk associated with diversification as well
because these challenges are of global nature and can not be solved easily. If Deliveroo company
expands its market the strategic challenges must be considered before because of the constant
risk that is associated with the company.
RECOMMENDATIONS-
The Deliveroo company can solve its challenges by adopting the policy measure of delivering
food as soon as possible it will help the company in order to maintain the quality and the
freshness of the food. Further, the hygiene requirements of the consumer can also be fulfilled by

the proper training to the delivery staff. That can help the company in following the orders to
increase and improve the WHO guidelines regarding Covid -19 pandemic. Proper delivery routes
will also decrease the time of delivery (Sharma and et.al.,2021). At last the Deliveroo company
should also make a marketing strategy that is region specific to promote their business on large
scale. The promotion will help the company to satisfy the needs of the consumer according to
their requirements.
P3: Evaluate the influences of globalization on organizational governance and leadership,
structure, culture and functions
In a global business environment, every organizational framework needs to pay attention
to its internal culture, structure, leadership model, and business functions. The same applies to
online food delivery service organizations such as the UK based 'Deliveroo'. Organizational
structure means its daily worklflow and culture refers to the total shared values and practices
through which team members and employees are guided in their activities. The business segment
of food delivery is rising steadily in many countries. The aforementioned food service
company's culture is analyzed below with the help of Hofstede's cultural dimensions theory that
comprises 5 central elements (Djekic and et.al., 2021). These help in the global business
operations on a multi-cultural level which are as follows:
Power-distance
Power distance is a measurable degree of the societal norms and regulations that can
either accept or reject the way an organization works. For instance countries with high power-
distance cultures such as Japan pay much adherence to respect in business too. This makes it
difficult for an American diplomat there who is used to first-person language. Deliveroo can
implement a centralized decision making approach that balances its wide-based trade relations.
Uncertainty avoidance
Uncertainty cultural value dimension is either ambiguous or structural in nature. This is
based on society's extent of going with uncertainty or avoiding in its daily functionings. Cultures
that are more rule bound by virtue might fit in the structural extreme of conducting procedures.
In this culture one should accept the preference for the structure, predictability, and order. Herein
the chosen food multinational can stringently define their regulatory behaviour to help navigate
risk assessment (Yi, 2021).
Masculine & feminine

This dimension describes the cultural orientation towards the degree of gender roles in
workplaces. It should not be confused with unappreciated gender values. This simply means that
some places like the Austria, Venezuela, and Japan believe men workers to be more ambitious,
assertive, and competitive while low masculine cultures like the Norwegian countries promote
female-centrism.
Identity
The cultural dimension of identity has two variations namely individualism and
collectivism. This refers to the type identification a culture associates with its individuals. For
example, the U.S culture places a high value on the need to fulfil one's own interests and is
therefore individualistic in approach. Meanwhile cultures like those of China and Africa followa
group identity. Both these identities have a definitive organizational impact (Liu and et.al.,
2021).
Time
The degree of time orientation is related to both aspects of cultural attitudes towards time,
that is, with tasks and relationships. Some cultures specifically the Western American is known
for focusing on quick results, short term goal, and promptness in work. On the other hand many
opposite cultures value persistence, patience and long term success.
The Deliveroo organization values its long standing business connections with
international partners and serves as a volunteer for enhancing cross cultural work values and
beliefs. Although the global food delivery segment incorporates all the cultural dimensions in its
business approaches but it is more inclined towards adapting the time orientation cultural
dimension that value both task focus and interpersonal relations. This seems to work
accordingly within the duty-bound organizational structure of the company.
P4: Evaluate the influences of ethical and sustainable globalization on organizational functions
Organizational functions can be defined as those elements that are necessary for a
coherent working of the business elements in a global market environment. The purpose behind
the smooth working of these functions is to properly maintain the work ethics and sustainability
of organizations like Deliveroo and others. Some of these functions are:
Operations management (OM) refers to one of the most integral components in the field
of business process management. It deals with the business administration functions for the

smooth and efficient working of an organization. It is primarily concerned with activities like
inventory checks, quality assurance, etc (Mišić and Perakis, 2020).
Waste control management is crucial to business management undertakings. The
generation of waste shows that either resources are not being put to effective use or excessive
resources are being used. Therefore, this function makes sure to identify, reduce and eliminate
waste production to save resources and overhead costs.
Human resource management department is involved with the process of recruiting,
hiring, training and focus on the skill development of their employees. The three main HR
practices for an international business are talent aquisition, training and development, and
performance management.
P5: Evaluate the different ways decision making can work effectively in a global context
Identifying Decision-making
The tool of strategic decision making in the global business environment is one of the
most important crisis management module for every business organization. It allows them to
manage risky and critical situations and bring change accordingly. This term is common in
global business scenario where Deliveroo company stays active in difficult situations through
logistics-driven buisness model. The company works suitably in a multinational market due to its
fee-commission revenue model which is decided before its strategic execution.
Judging Alternatives and Brainstorming
This evaluative meaure is applied according to the internal situations within the
organizations. It is very clear that even strategies become ineffective if the company personnel
like employees, leaders or the management are ineffective in the decision making process.
Strategic business strategies depend on efficient employees, their level of skills and the
stakeholders' principled criteria for keenly judging alternative solutions. The Deliveroo food
service company efficiently focuses on its 3 main stakeholders namely consumers, deliverymen,
and suppliers (Bahadorestani and et.al., 2020).
Selecting and Executing best decisions
The process of globalization for small, medium, and large business organizations have
one key factor in common which is the selection and handling of shortlisted decisions. The
strategic decision making process does not stop at only assessing the risk and crisis factors. It
goes further with the step of conscious selection of the best and reliant decisions that can be later

on executed swiftly in challenging situations. This can be exemplified through Deliveroo's
decision making strategy that revolves around selling their differentiated products with the USP
of attractive high fidelity restaurants to both its local and global customers.
P6: Determine and aticulate the various routes to internationalization the organization may adopt
including key barriers
The process of transferring an established business to an international scale via global
market approaches is carried out through strategic expansion routes. These are structured
distribution channels of locating and expanding existing businesses for profit maximization.
Some of the global expansion routes that Deliveroo can adopt are as follows:
Mergers and Aquisitions
Establishing joint ventures with industries of similar products work out as a good form of
alliance for global businesses. Another sub strategy can be of setting up a turnkey project – a
project which is built by a company for the sole purpose of selling it as a product. If Deliveroo
applies this then it will not only further its global business process but will also get adequate
recognition in the established operations in the industry (Dezi and et.al., 2018).
Licensing & Franchising
The process of licensing the in-market partners of a company allows them to sell products
in the company's brand name which expands its sales and revenue by reaching out to new
possible customers. In a similar way, for the food company to franchise its product lines, it
requires further research into the local tastes and preferences into buying those goods.
Greenfield projects
This global expansion strategy of setting up greenfield projects consists of effortless
foreign direct investment framework by carrying out product manufacturing operations in an
entirely new market segment. In this scenario, the establishment of market investment facility in
other food based sectors turn out to be beneficial for the revenue growth.
Key barriers in doing business internationally with recommendations
The global business evironment is a constantly growing and developing area with certain barriers
in international business need to be considered and overcome (Czinkota and et.al., 2022). These
are as follows:

 The first major obstacle to gloval business settings is geographical distance and linguistic
discrepancies. These can be understood through language training and hiring good PR
guides or translators.
 Another barrier is that of differences in trade and tariff regulations that create major gaps
and variances which can be subsided with good international relations.
 The third barrier is cross-border information exchange that can be maintained with
powerful and friendly strategies.
Critique strategy that can be adopted by organization in a global business environment
Critique strategies in a global business environment refers to the strategic business
approaches that an organization adopt in order to conduct its business on an international level.
These are - scope of operations: locations, countries, etc., resource allocation: allotment of
existing resources and competitive advantage: factors for product differentiation.
CONCLUSION
The report above has critically analyzed several key factors that are incorporated in the
arena of global business environment. In the mentioned context of Deliveroo company, the
report has observed certain integral aspects which drive its globalization and has determined its
associated strategic complications. This had been included with an explanation of global market
influences. The research study has also evaluated how certain influences affect the organization's
structure, culture and functions with an applied model of Hofstede's cultural dimensions.
Furthermore it has critically evaluated the impacts of globalization on the company's decision-
making and strategy building followed by the suggestion of various international routes that it
can include in its approach of global expansion.
CONCLUSION

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