Global Business Environment: Factors, PESTEL Analysis, Challenges and Opportunities

This report discusses the influence of globalisation upon leadership and management, culture and governance of the company Deliveroo. It also evaluates the essential factors of cost, environment, competition and market that drives global commerce and trade. The report includes PESTEL analysis, challenges and opportunities faced by organizations in the global business environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1..................................................................................................................................3
Analysing the essential factors of cost, environment, competition and market that drives
global commerce and trade.....................................................................................................3
PESTEL Analysis...................................................................................................................4
Critical analysis the impact that key factor has upon the global business environment in terms
of benefits & challenges.........................................................................................................5
Critically evaluate the global business environment, including the opportunities and
challenges faced by organisation............................................................................................6
Explaining the complexity of strategic challenges that are faced by businesses when operating
in a global environment..........................................................................................................6
CONCLUSION................................................................................................................................7
PART 2..................................................................................................................................8
INTRODUCTION...........................................................................................................................8
Evaluating the influence of globalisation upon business governance, leadership, structure,
culture & functions.................................................................................................................8
An evaluation of how the above has been influenced by global operations & how the business
has been influenced................................................................................................................9
Applying Hofstede model of culture....................................................................................10
The ethical & sustainable factors evaluation considered in global market..........................11
Decision making in context to risk & diversification in a global context............................11
Critical evaluation of the range of strategic global expansion.............................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Globalization is the process in which the business activities are expands through
internationally and stabilized into the foreign market (Gentry and Gordon, 2019). The business
have also generates potential to builds the interconnection and relation with the foreign
organization or business. In other words, The company expands their production at the global
level in which the organization manufactured large number of producing goods and services.
Every country is famous for their particular specialization of any goods and service but can not
good in all products. That is why the business and organization to expands globally to represents
their product into the foreign market. This can help in growing of the business at international
level and gives many benefits to the company or organization that is independence in global
economy, technology, information and many more (Katta and Patro, 2021). This report is based
on the company Deliveroo, which is growing food delivery at international level. Deliveroo's
headquarter is situated in London and their sub offices in many countries. This report also
includes the digital technologies in business, business driving forces and discuss upon the
PESTEL analysis that can be helpful in analysis of business environment and also includes
routes and barriers in the global businesses.
MAIN BODY
PART 1
Analysing the essential factors of cost, environment, competition and market that drives global
commerce and trade
Globalization of business is leads to more profit and increment in annual revenue. This can helps
in grow thing of the company, there are various factors that can adopts the globalisation
techniques which are giving below:
Cost: The cost is the factor, where the market is totally depends on it. The cost is denotes as the
expenses, investment which can be spends in caries goods and products from country to country
but, this can provides more advantage in global level. It enhances the economic level of the
business or organization. Deliveroo take many advantage of it and generates the economy at
higher level and maintains the scale in the economical factor. This company provides shipping in
the bulk form and assist the more profitability as to reducing the cost and enhances the margin on
a particular delivery (Kolo, 2019).

 Market: The market is very important segment that can growth a business in which the
organization or business can admire the market of the particular foreign country that can
gives the high revenue in returns once the product is stable into the market. In context to
the Deliveroo, a manager can focuses on to attains the sell of high market share. Which
can provides long-term business sustainability at marketplace. Deliveroo is basically
focuses on the satisfaction of the customer needs and wants along with gain high revenue
generation.
 Competition: As the globalization has developed in the corporate world even in the
presence of extreme competition. The competition is raised through many companies that
can launch the substitute of the product into the market. That is why the competition
arises for the main company. In context to Deliveroo, the company is operating at
international level due to which it has to face severe competition in the market (Madsen
and Grønseth, 2022).
 Environment: This implies that the environmental factor that totally affects the company
which includes many elements like social factor, physical factor, political factor, legal
and technological factor that can directly affects on the business environment. The
different environmental force can conducts many activities for to achieve the goal and
high revenue to the company. In relation to the Deliveroo, The manger is focuses on the
firm to achieve long term sustainability and try to decreases the competition in the global
environment as delivering the goods in least cost. It can attracts the person and adhere to
the particular business or organization.
PESTEL Analysis
The PESTEL analysis is a work in which to analyses the external forces that can affects
the company on the growth bases. It can also provides the opportunity in the business expansion.
Where the PESTEL analysis Deliveroo company are mentioned below:
 Political factor: The political factor may be affects the business environment, the
external environment is also influence the organization because the political stability is
stable and this can imposes the least number of taxes rate that can motivates the company
and saving of the economies of the organization. In relation to the Deliveroo, manager
needs to pay less number of taxes. This can affects the organization on the long term
goal.

 Economical factor: It includes gross domestic products in which the company or
organization have make the bond between those countries that have strong economical
environment and also detects the spreading power of consumer. In order to Deliveroo, it
can achieve high levels of customer and to gaining high numbers of profitability.
Social factor: In the international level Deliveroo is focuses on the the customer and the
particular society of the local area that can reflects the review of the particular product which can
be made by the company. The company is totally focuses on the high beliefs and attitude of the
society people that can makes the more adherence to the customer to the organisation or
company (Shaulska and et.al.,2021).
 Technological factor: The technological factor is very important for the grow thing of
the company because modern technologies are changes as per the time forwarded. So the
Deliveroo has investing into the technological and new advancement that can provides
the customer satisfaction and use operating technology while entering into the foreign
market or international market.
Legal factor: The word denotes that legal factor is related with the legal term, that must follows
all the organization and companies. In context to Deliveroo, this companies follows all legal
documents and also follows many policies which can be made by government. These legal rules
and policies are implemented because of the customer safety. This companies also follows health
and company law, for runs their business smoothly in the international market (Sinha and
Sengupta, 2019).
 Environmental factor: This factor is very mandatory for every organizations that do not
harms the environment through this the natural resources are also very important.
Deliveroo company followed the rules of water pollution, air pollution and several other
policies that do not harms the nature and also society people this can leads the business
profitable at international level.
Critical analysis the impact that key factor has upon the global business environment in terms of
benefits & challenges.
The benefits of technologies and advancement in the global business environment. It
helps to work easily on the global bases with the boom of digital environment. Technology in
every aspects can changes the way of working making it easier in context to Deliveroo,
technology plays the vital role in this organization. With the help of technology, Deliveroo saves

their data and records on the digital bases therefore documents maintained digitally that can
easily finding the information about the customer and also delivery of the goods and services
becomes faster with the help of technology or digital working. Moreover, technology impacts on
the over all economy of the organization and businesses. It can also makes the employees adhere
to the organization because due to the technology less efforts of the employees in the business.
This would helps the Deliveroo to runs their business efficiently and innovative in the global
business environment (ThiHoa and et.al.,2021).
Critically evaluate the global business environment, including the opportunities and challenges
faced by organisation.
From the above information it can be summarised that there are various factors which
affect the global trade business. In relation to the chosen company that is Deliveroo, it is must for
the business to expand into the market in order to perform better. As the term globalisation is
getting increased that is why the businesses are to attain the level of suitability to bring higher
competitive advantage in the market.
Explaining the complexity of strategic challenges that are faced by businesses when operating in
a global environment.
It can be seen that the concept of the globalisation supports the company in order to carry
the operations with the high level of effectiveness. So that the company will be able to formulate
the suitable strategies for better functioning. Moreover, internationalisation is known to be a
platform through which the companies will be get chance to deal with diverse countries comes
together and performs trade. Therefore, there are various chances of issues and complexities in
the market or in trade which company operations. In context to Deliveroo, there is a presence of
several challenges, complexities which are present in globalisation. The complexities are defined
under-
 Entry fees- Deliveroo has to spend a lot of money for conducting its business by
exchanging through different fees which are related to exports. And in franchising too, by
collaborating with local and international level businesses. Along with it, Deliveroo has
to face calculated challenge with respect to pay a sum in a form of entry fees to the nation
in which they are conducting their business. This lead to bring some adverse impact on
the profitability of the company and the additional & operating cost.

 Loss of cultural identity- It can be seen that difference in culture is said to be the main
issue which is faced by the company while expanding globally. The companies are to
adopt various cultures with the aim of setting bond with the customers and the
employees. Such adaption of culture can be a complex process to implement and
understand. That is why, it is significant to classify various culture of diverse nations that
supports in successful operations and running of business as well as effective functioning
of organisational workings in the market.
CONCLUSION
From the above report it can be seen that globalisation is very important part that can
surely takes the business at higher level. It can gives more profitability and also generates more
revenue. That can place a position into the foreign market and affects more productivity in the
organization. This report also discusses about the PESTEL analysis of the Deliveroo company
and also discussed about the external forces that impacts on the organization to becomes
globalisation. This report also includes routes and barriers in the global businesses. The digital
technologies in business, business driving forces and discuss upon the various analysis that can
be helpful in analysis of business environment.

PART 2
INTRODUCTION
Globalization is a process in which the the company wants to develop a professional
relationship between two or more countries so that the larger audience can be reached in the
another foreign market that can helps to increase the foot fall in the globally (Westney, 2021). It
is directly affects the economy of the company that enrols the high productivity. This part of the
report discuss about the influence of globalisation upon leadership and management, culture and
governance of the company Deliveroo. The application of McKinsey and Handy's model which
is based on culture that can increases the productivity of the company will also discuss into the
part of this report. Moreover, many barriers which can faced by the company at the time of
globalization discuss also in this report.
Evaluating the influence of globalisation upon business governance, leadership, structure, culture
& functions.
There are many factors that can influence globalisation in the Deliveroo, with the
implementation of McKinsey model. Where, McKinsey is the model that refers as a tool that can
helps to designing the business or organization. Deliveroo takes the advantage of this model as to
achieve the business objectives that can helps the business successfully global (Samimi and
et.al., 2020). The application or factors according to McKinsey model, in respect to Deliveroo is
given below:
 Structure: It is the function of organization that can clears the instruction because of
avoiding the confusion and chaos into the employers. This is the crucial element for
Deliveroo, that can detects the employees accountability in an organization.
 Strategy: In the strategy, The company can creates for change in the implementation
and modification that can gives a company to competitive boundary. In context to
Deliveroo, the company takes the advantage as to make modification into the delivery or
supply.
 System- The system denotes as the criteria of working that the employers start to
achieve the organizational processes and operations that motivates the employees to
achieve business activities. Deliveroo follows all the standard operating procedures that
can help the organization to achieve more productivity and decision making process.

 Shared values: It denotes as the process that can improves the health of the organization.
While governing the changement into the organization and also Deliveroo expect from
their employees to implements behavioural modification. This modification which is only
possible when the organisational values and strongly changes into the culture.
Style: This is the step comes under the management of the organization or business. Deliveroo
takes the advantage of this application of McKinsey model to decides the level of employees for
their productivity and satisfaction (Bhaduri, 2019).
 Staff: This is the main objective of the company to motivates the employees that can
gives their hundred percent in the work. There are many employees in the company that
some of are recruited, internship, training and also retaining them to a company who are
actually capable of doing work in a good manner. The Human Resource manager of the
Deliveroo, totally focus on the salary of the employees that will provides more attention
and motivation to the work and achieving the target of the company.
 Skills: This factor directly correlated with the productivity of the company as the high
skilled employ have high level of work where the low skilled employ do not produce
outcomes for the company. So, the Deliveroo is arrange the employees according to their
work capability in which they plant as the high skilled employees placed at top level of
management, where lower skilled employees placed at bottom level of work.
An evaluation of how the above has been influenced by global operations & how the business
has been influenced.
The entrance into the global market for a new company makes the market inescapable.
This is because of the globalization not for the domestic market limitation. That is why the
domestic market share is under threat into the global market. There are many factors that can
promote the company as a global and gives the guidance to the Deliveroo for enhancing the
business-
 Political changes: The important thing about political changes is to socialize and unite
the global market for the trade agreement and also help in globalization to enhance the
development of the company or organization. This can provide various opportunities for
the Deliveroo (Zhang and Ma, 2021).
 Development of technology: Technology is very important for the organization and
businesses that can not only helps in increasing the flow of idea but also helps in

communication to spreads the views, ideas and thoughts across the border of the
organization.
 International businesses climate: This factor is totally depends on the enlargement of
communication that can helps the business and also contribute in the process of
globalisation. This can also have some tools and instruments which supports the
Deliveroo in the process of globalization.
 Expenses: The main motto of this factor is trade of liberalization but not only for it this
can also manages several expenses like investment in the particular areas in consumer
habits and needs for economies and many more (Minkov and Kaasa, 2020).
Applying Hofstede model of culture.
There are several factors in the global market that influences the customers to take any
decision. The factors that are discussed with the help of Hofstede model are mentioned below:
 Power distance: The strong and powerful leaders have the strong hierarchies in
accordance with the culture consisting of high power distance. The head of the company
is only liable for the decision of the Deliveroo.
 Individualism and community ties: In this concept, those people who are not aware
about the product, they are targeted through the promotion and also the product will
provides freedom and save time of the consumer.
 Masculinity and trade role: The global market is full of masculinity and their roles are
targeted according to the culture of the particular place. The company takes correct
decision to follow that targeted market.
 Tolerance and ambiguity: There are many types of cultures that are differ from each
other, this factor says that the tolerance to the another c;cultural product or ignore them.
The company Deliveroo, have many types of products that can exist in the global market
but the company customized their activities according to them.
 Long term orientation: The company can not follows only the cultural and tradition but
can also helps in analysing the link of past that can creates the customer adherence and
also company appropriate for the traditional culture of the particular place.
 Indulgence and quick gratification: the degree of freedom acknowledged by the social
norms are valid under this factors to fulfil citizens desires. The natural human desire and
free gratification of basic, allowed by the society is considered as Indulgence.

The ethical & sustainable factors evaluation considered in global market.
Ethical factors are very important for any organization in which the working process, data
,information, technology, services and many more are traded under the ethical motives. Ethics
can also helps to detect the situations, what is the right thing in an organization and what is
wrong (Ugrin, Pearson and Nickle, 2018). In relation to the Deliveroo company, with the help of
ethical factors Deliveroo's employees can make the chain and develops the relationship between
employees and manger or senior staff. The main motto of the company is to enhance the
productivity or revenue and maintains the goodwill into the customer orientation. The whole
process can done easily with the help of ethical issues. These ethical issues helps in smooth flow
of business and provides growth in global market.
The sustainable factors of globalisation comprise of various factors and determinates that
affects the businesses in order to expand on the global level. As it elevates the level of
profitability of the company in the market that is why they are able to survive better in the
competition. Moreover, there are diverse factors which majorly contributes to the sustainability
for the chosen company. In relation to Deliveroo, it comprises of economies of scale, human
resource and also marketing of product and services. Due to which the employees feel content
and attract more customers to the company. In additional to this, it can be seen that when the
employees are highly talented and dedicated towards the new innovations and marketing
strategies then it will bring more customers towards the services of Deliveroo. It provides them
higher profitability as well as long term sustainability in the market.
Decision making in context to risk & diversification in a global context.
On the basis of above information, it can be understood that it is must to consider the
strategic actions which help the chosen company to diverse their span while expanding globally.
Due to which the company will be able to gain competitive advantage and good market share at
global level. With the help of having effective and sound business decisions globally in relation
to Deliveroo, it supports them in moderating at various external and internal factors which can
have an adverse impact on the business. It can be said that the external and internal elements are
those which can hamper the proper running of company and the level of profitability (Litvin,
2019).

Critical evaluation of the range of strategic global expansion.
There are many types of expansion methods that can helps a company to go globally. In
relation to the Deliveroo company, there are several routes for Deliveroo are mentioned below:
 Licensing: Licensing is the authority in which the company provides the legal documents
that can established their business with none of the restrictions. The company which
gives the authority, the name of the company and license number of it is written in the
legal document to the business oriented firm. This gives the opportunity of the
employment on host country in which the license operates the business.
 Exporting: It is the process in which the company starts exporting their manufacturing of
goods and services. This can helps in increment of the business and increases the
productivity. The major advantage of this route is to direct exporting of the goods and
don't need to established the firm in the particular country. In context to Deliveroo,
company can exports many thing for the purpose of delivery this can follows the
exporting of services.
Conclusion
This part is based on the application of McKinsey and Hofstede model which is related to
the culture that can enhance the level of productivity in the company. Further more, there are
many barriers which are faced by the company at the time of globalization was also
demonstrated in this report. It also included evaluation of the range of strategic global expansion
routes.

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