Global Business Environment: Challenges and Opportunities for Deliveroo

This report analyzes the impact of globalization on Deliveroo's strategy and operations, evaluating challenges and opportunities faced by the company in regard to risk and diversification tactics and international supply chain flow. It also evaluates the influence of forces of globalization on organizational governance, structure, leadership, culture, and functions, and provides specific suggestions on how the firm can overcome challenges faced while operating in the international business environment.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
Explaining the subject of globalization and key factors which drive this phenomenon..............4
Critically analyse the impact of factors upon global business environment in term of
advantages and challenges for ventures.......................................................................................6
Critically evaluating global business environment in which Deliveroo is operating and impact
on its strategy and operations.......................................................................................................6
Defining complexity of strategic challenges faced by company when operating in international
market..........................................................................................................................................7
Critically evaluate challenges and opportunities faced by company in regard to risk and
diversification tactics and international supply chain flow..........................................................8
Conclusion based on justified and specific suggestions on how firm can overcome challenges
faced while operating in international business environment......................................................8
PART 2............................................................................................................................................8
Evaluating the influence that forces of globalization put on organizational governance,
structure, leadership, culture and functions.................................................................................8
Examining the influence of ethical and sustainable globalization on Deliveroo functions.......13
Critically examine global market influence in application to theories and models related to
structure and culture of company...............................................................................................14
Explaining how strategy and decision-making of company are influence and shape by forces14
Determining barriers for entering and operating in international market..................................15
Various ways decision-making can work effectively in global context....................................15
Determining various routes to internationalization that Deliveroo may adopt in different
geographical markets.................................................................................................................15
Recommendation based on how firm should adopt its organizational structure and decision-
procedures to respond challenges & opportunities....................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES................................................................................................................................1
INTRODUCTION

Global business environment is described as surrounding environment of a company
where it has managed its venture growth and operations in effective manner. It encompasses
different factors that affect current practices and strategies of companies, whether it is large or
small. It also refers to those environments in which different sovereign nations and organizations
with key forces exogenous to domestic boundaries that influence their decision-making,
competencies and capabilities. The current assignment will be based on Deliveroo, which falls
under the list of top international organizations that are operating in food & delivery industry,
UK. The study will explain the concept of globalization, factors which drive phenomenon and
challenges faced by chosen company. It will define the impact of each factor on international
tactic and operations of firm.
Furthermore, the report will specify, impact of forces of globalization on leadership,
culture, functions and organizational governance. It will clarify influence of sustainable and
ethical globalization on business functions, ways decision-making can work effectively in global
context. Lastly, the assignment will specify various routes to internationalization that Deliveroo
may adopt including barriers.
PART 1
Company overview
Deliveroo is the best local restaurant in the United Kingdom, it offers takeaway food
service to customers. Organization successfully operate and manage its business functions more
than two hundred locations across the nation.
Explaining the subject of globalization and key factors which drive this phenomenon
Globalization is defined as set of key procedures and effective interaction between two
nations, companies and people's, who tend to grow and obtain existing growth opportunities
whether it is accessible in domestic or international level (Shkurat, 2020). It is also considered as
wide term and covers different perspectives. This term provides several benefits to organizations
that are running and managing their businesses operations. For example, it may contribute to
increase profits margin of a company and allow their management to take pleasure of generating
revenue more than last few years or months.
In the world of business, there are different types of factors available that drive this
process in several terms. For purpose of determining these forces, PESTLE analysis as strategic
model is applying here;

Different level of economic integration-
This force may drive globalization in effective manner, in term of driving the attention of
companies towards expanding their ventures and conducting trading practices entering into those
markets where economic growth is high in extent (Blind, Lorenz and Rauber, 2020). It may put
positive impact on growth and success of nations.
Investment chances and trade-
It can be said that trading and investment chances also play important role in the context
of globalization in form of increasing organizational productivity and effectiveness to enter into
specific nation or market after following stable trade policies (Rehman and et.al., 2021). They
may invest in similar ventures in other countries to grow and globalize.
Technological advancements-
This force drive phenomenon or process of globalization toward success, more than the
expectations of all stakeholders who are expecting to obtain desire outcomes with connect or
relation of a firm (Autio, Mudambi and Yoo, 2021). It may drive the attention of marketer
toward conducting international advertising practices that may help to generate excellent
awareness of their companies ventures.
Cost of globalization-
Along with above three, this element may also drive the same concept in form of
increasing sourcing effectiveness and costs vary from one nation to another (PRASAD and
MUBEEN, 2020). It may enable global companies to take benefit of cost drivers. It may provide
them chance to build international scale economies and high product development prices in the
recent time.
Market conditions-
It can be said that domestic markets in most of the nations may become more saturates
and just because of this reason, firms may choose drive toward global expansion of ventures
(Broitman and Czamanski, 2021). They may expect to enhance their customer’s satisfaction even
more than few eras.
Competitive environment-
This factor drive globalization in varied terms such as driving concentration of
multinational companies toward playing across national boundaries, which is quite important and
beneficial for them to do so effectively and successfully (Hosen, 2020).

Critically analyse the impact of factors upon global business environment in term of advantages
and challenges for ventures.
It can be critically evaluated that technology, trade and economic integration may put
positive impact on international business environment in term of developing growth chances as
key benefits. For example, technology advancement affects international corporate environment
positively in form of enhancing performance level of companies and enlarging their size as well
as efforts to reach abroad and across domestic frontiers. On the other hand, changes related to
market situations and cost of international expansion may put negative impact on similar concept
in term of developing varied challenges such as lack of diverse workforce management, language
issue or barrier that a company while operating their venture into this type of environment may
effort to deal.
Critically evaluating global business environment in which Deliveroo is operating and impact on
its strategy and operations
Political factor-
Political stability and effective trade policy of nation where Deliveroo is operating its
venture may put positive impact (Do Thi and et.al., 2021). For example, it may provide benefit to
firm in term of providing global expansion opportunities that may support to increase profits
margin and revenue.
Economic factor-
Unemployment, or economic growth may also affect international business environment
where Deliveroo may establish its business. In case of company, it may create challenge to grow
and become a successful brand, as due to pandemic economic growth rate become slow, which
may lead to decrease demand of home delivery services whether it is related to expensive
products or food.
Social factor-
Market trend may put positive impact on business environment and Deliveroo in term of
providing key edges. As people may prefer to order food from their favourite restaurants or other
F&B companies as they are unable to cook or prepare meal because of hectic working schedule,
which in return provide advantage to company as increase sales.
Technology factor-

Technology advancement may play significant role in success of company as it may
enhance its marketing efforts and drive marketer toward using digital advertising tools, which is
beneficial and essential as well in varied manners.
Legal factor-
Changes related to any law and regulation related to business & customers may put
negative impact on Deliveroo, its home delivery operation and strategy as well. For example, it
may lead to increase work pressure on management to modify their current tactic related to
business operation such as chosen one which is not possible to do so in short time duration.
Environmental factor-
Consumer and government concern about environmental sustainability may put positive
impact on international strategy of company and its venture operations. For example, it may
contribute to build its strong brand image in both, national and global market as it may conduct
& follow CSR practices, which make its market expansion tactic successful.
Defining complexity of strategic challenges faced by company when operating in international
market.
Operating and managing organizational operations as well as functions in an international
environment is quite challenging for a company such as Deliveroo. For example,
implementation and success of diversification tactics is a complex issue that organization may
face, which put negative impact on its market expansion strategy in term of creating issues to
attract target customers. Without effective interaction, management is unable to serve its home
delivery service that may lead to decrease profits margin and productivity. In Brazil, people may
take time to understand the effectiveness of a product, especially when it is new in market.
Managing diverse workforce, is another challenge that organization may face while
running business in global corporate environment. For instance, managing a wide teams of
employees, among which each candidate belong to different nations, is challenging task for firm
and its management as well (Lohia and Sarva, 2020). The overall process consumes a lot of time
and require efforts, which is not possible for Deliveroo to do so as it may concentrate on setting
business in new market such as Brazil that is important. The complexity of this challenge and
above one drive the attention of manager and leader of chosen firm toward strategic plan
development.

Without managing workforce, it may unable to manage flow of overall supply chain in
systematic and effective manner.
Critically evaluate challenges and opportunities faced by company in regard to risk and
diversification tactics and international supply chain flow.
It can be critically analysing that by grabbing available opportunities, Deliveroo may run
its venture into Brazil successful. For example, by increasing customer base, firm may stand
competitive in the both domestic and international market. On the other hand, due to challenges
in the context of supply chain operation, diversification tactic and risk, it may deal with critical
situation that affect strategic plan and effective approaches related to market expansion (Schmitt,
2020).
Conclusion based on justified and specific suggestions on how firm can overcome challenges
faced while operating in international business environment.
It has been concluded, from above study it that organization has entered into Brazil as
profitable market that enhanced its productivity extent more than last few months or eras. But
still it may take approach to adopt new tactics that help to overcome each challenge accessible in
global business environment. These suggestions are;
 Deliveroo and its management can take action to build relationship key suppliers in new
market, who are capable to provide them quality raw materials.
 It can also consider the method of diverse workforce management that made company
effective and productive more than existing brands who are able to conduct the same
practice, in which chosen firm is expert.
PART 2
Evaluating the influence that forces of globalization put on organizational governance, structure,
leadership, culture and functions
For purpose of evaluating the impact of factors of globalization on varied elements of
Deliveroo, appropriate theoretical frameworks may apply below;
McKinsey’s 7S-
Strategy-
Globalization and their forces may put positive impact on marketing and food delivery
strategy of Deliveroo, in term of opening ways to expand business in Brazil.
Structure-

It may also affect organizational structure in term of driving management attention
towards enlarging venture and expanding size and scope to firm.
Systems-
Intense competition is considering as another driver or force of globalization that may put
impact on current practices of company in negative manner (McKinsey 7S Model, 2021). For
example, it may lead to increase work pressure upon management and employees to work harder
than ever.
Shared Values-
When the norms and behaviour of employees in Brazil is different from existing
workforce, it may put negative impact on leadership and culture of company in term of deceasing
employees and operational effectiveness.

Figure 1McKinsey 7S Model
(Source: McKinsey 7-S Framework, 2021)
Style-
Differences between working style of employees and strategic leadership styles of leaders
due to nations differences may put direct impact on each aspect of Deliveroo negatively.
Staff-
Globalization may influence management functions of organization in the context of
candidate’s performance management positively in term of providing more understanding about
tools, approaches and technologies that they may utilize in regard to same concept (The
McKinsey 7-S framework, 2021).
Skills-

Globalization may affect skills and effectiveness of candidates in negative manner in
term of increasing pressure from management side to improve their skills that meet expectations
of company and stakeholders while expanding into Brazil.
Hofstede’s dimension of culture-
Power distance-
Globalization may put negative impact on Deliveroo culture, leadership and everything,
because in Brazil people accept inequalities among individual and also believe that power
distance in companies are acceptable, which is quite opposite to UK residence norms.
Collectivism vs individualism-
Brazil obtain score of 38, that mean individual person in this nation from birth onwards
are integrate into cohesive and strong teams, which may put negative impact on company
success as its existing employees may prefer to take favour of individualism (What Is the
McKinsey 7s Model, 2021).
Uncertainty avoidance-
Along with above factors, the current one may also influence Deliveroo, organizational
culture, structure and functions. For example, Brazil scores high in the context of uncertainty
avoidance, which means people in this nation may tend to elaborate legal systems and want rules
to structure their life, while UK residents are opposite in term of this behaviour as they do not
need specific rule to make their life's manageable as it already has.

Figure 2Hofstede's Dimensions Model
(Source: What is the Hofstede’s Cultural Dimensions Theory, 2021)
Femininity vs masculinity-
Brazil scores low in this category of dimension which mean people may take care of
others and respect the same (Rojo and et.al., 2020). It may put positive impact on company
structure as people whether they are new or existing work together with current environment and
things.
Short term vs long term orientation-
The main difference between UK and Brazil where firm tend to enter is current one that
consider as key factor that influence each and every aspect of company. As Brazil score low on
this dimension that means individual prefer to maintain time-honoured traditions while
considering societal change with key suspicion. This type of preferences may affect company

when both regions employees work together as existing candidates may prefer to modern
education to prepare themselves for better future.
Figure 3Hofstede model of culture
(Source: Country Comparison, 2021)
Restraint vs Indulgence-
It may put negative impact on Deliveroo structure and culture in term of putting pressure
on management to make possible change that is not easy for them to do so. They may posses a
negative behaviour and have attitude toward optimism. While in the UK, individual person
prefer to take pleasure of their work and always seek to conduct fun and enjoy activities, they
cannot sit back and avoid their basis needs for which people earn.
Examining the influence of ethical and sustainable globalization on Deliveroo functions.
Sustainable forces such as environmental sustainability practices and other components
of CSR, & ethical factors such as data protection, communication, equality, etc. may put positive
impact on Deliveroo, functions. For example, organization purpose of eliminating the air, land
and other form of pollution that impact positively upon environment and maintain their
sustainability in effective manner (Ilyas, Abid and Ashfaq, 2020). Just because of this reason,
company may conduct sustainable practices that help to build strong and excellent brand image
in the market. It may also provide firm chance to run venture into Brazil successfully which in
return provide unexpected outcomes in term of increasing customer base, enhancing their
satisfaction level and driving their attention toward word of mouth promotion that is quite
enough for a company when they may enter into new nation.

Figure 4: Deliveroo
(Source: Deliveroo UK Rider Support, 2020)
Ethical factors may also affect Deliveroo marketing, operations and meal production
functions in same manner just like above does. For instance, when firm develop marketing plan
including fact data, it may help their management and marketer to gain the trust of others as it is
quite important for firm to do whether they are customers or investors.
Critically examine global market influence in application to theories and models related to
structure and culture of company.
It can be said that international marketing may influence current practices and activities
of the organization as well as its culture in negative and positive manner. For example, it has
driven the attention of organizational management toward making possible changes for purpose
of making new as well as existing employees comfortable that is quite essential for management
to do so in appropriate form (Huang, Li and Liao, 2021). While, sudden changes related to
consumer needs and economic growth may put negative impact on firm, which has been
determined with the implication of PESTLE and other strategic business environmental analysis
models.

Explaining how strategy and decision-making of company are influence and shape by forces
Each force whether it is external or internal may drive the attention of administration and
company toward making possible actions which mean it may put impact or influence on current
practices such as decision-making and strategy formulation.
Determining barriers for entering and operating in international market
Lack of understanding about market or consumer preferences may create barrier to
market entry and operation of Deliveroo, which is not suitable for success of its plan (Qi and
et.al., 2020).
Import quotas may also consider as key barrier that firm face while taking decision to
enter into new nation and sustaining venture.
Various ways decision-making can work effectively in global context.
Decision-making process of Deliveroo may work in effective manner, in several terms.
For example, in order to gain competitive edges, organization may take approach to conduct
market research which enable its management to collect information about those drives that
support to achieve aim. Furthermore, they may conduct research based on competitive analysis,
to make assure that how much rivals are effective and productive.
Determining various routes to internationalization that Deliveroo may adopt in different
geographical markets.
Licencing-
This approach is as effective as all, because it may provide company chance to enter into
new market, by following legal term and agreed on specific rules, in term of taking licence to run
business and manage its functions in the Brazil. It is beneficial in term of enhancing
effectiveness related to internationalization, while this route may put negative impact on firm
plan in term of providing limited facilities or authorities (Al-Kwifi, Obeidat and Fetais, 2020).
Franchising-
Organization according to this route may attempt to make an agreement with franchisor
who give them power to run their venture in same sector. It may provide benefit in form of
speeding business growth, on the other hand, this option may put negative impact on success in
term of limited or lack of privacy.

Recommendation based on how firm should adopt its organizational structure and decision-
procedures to respond challenges & opportunities.
It can be said that organization can overcome the above challenges in effective manner,
by taking varied methods into their consideration. For example, it can develop team of players
who have power and ability to guide others and make them ready for further situations where
possible change are needed.
CONCLUSION
From above analysis, it has been concluded that company has increased its profits margin
and generated revenue more than other food home delivery organizations by developing strategic
plans and successful strategies. It has taken actions to consider each factor of globalization that
helped to make management stronger in terms of taking strategic decisions. Furthermore,
utilization of key competencies enable organization to run its venture successfully in Brazil. By
conducting ethical practises and considering environmental sustainability concept, company has
gained the attention of potential stakeholders who are capable to grow and make firm successful.
Moreover, from about discussion it has been summarized that joint-venture adoption S market
entry route, has given management unexpected opportunities which it has gained via strategic
plan development and implementation.

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