Global Business Environment: Key Factors, Challenges, and Impact on Organizational Functions

GLOBAL BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
P1 Key Factors of globalisation...................................................................................................2
M1................................................................................................................................................2
D1................................................................................................................................................2
P2 Challenges faced by company operating in global environment...........................................2
M2................................................................................................................................................3
P3 Impact of globalisation on organizational structure...............................................................4
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
.....................................................................................................................................................4
D2................................................................................................................................................5
P5 Evaluate the different ways decision making can work effectively in a global context........6
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers.......................................................................................................7
M4................................................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Global business environment is the international interaction out of a company control
that influence its business operations, decision making on resource utilization. Global business
environment is consist of external and internal factor that can harm the organization growth in
negative as well as in positive way. Along with this, in order to sustain in international market
organization has to conduct market analysis so that launching of their products are successful.
Furthermore, the present report is based on Deliveroo is a British online food delivery company
that sell products and services through various channels and local store. Moreover, the present
report will discuss about critically analysis about risk and strategic challenges adopted by
company.
MAIN BODY
P1 Key Factors of globalisation
Pestle
This is known as strategic tool that is used by company in order to analysis about the external
factor in order to sustain in the environment. Along with this, it helps in finding external factor
that will help in finding right opportunity for the growth (Bismark and et.al.,2018). It is consist
of various factor such as political, legal, environmental, economic and technology.
Political: This factor is consist of rules and policy made by the government in order to maintain
the peace in the societies. Along with this due to pandemic government has made new policy
such as social distancing and online payment that are followed by company. Furthermore, the
Deliveroo is following by the organization in their store in order to attract large customer. In
addition to this, due to this policy company has to spend more in the infrastructure in order to
sustain in market and it has increase operational expense of firm (Kochkina, 2019). Along with
this policy such as restriction on trade has affected the business of firm as it was not able to get
material from the suppliers as well as to meet the demands of customer. Thus, this policy has
also impacted negatively on revenue earning of the firm.
Economical: Economic condition also affects organization profit and loss that helps company
in sustaining in the market Along with this, Deliveroo has expanded their business in market of
UK that has good economic condition that has helped organization in attracting large customer
(Capobianco and et..al.,2021). However, due to COVID GDP rate of country has decline and
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it has impacted growth of firm in negative way. In addition to this, due to Brexit Policy most of
the workers has moved to EU and due to that Deliveroo is facing harder time in finding worker
as most of them left because of poor economic rate (Erbas, 2019). Moreover, due to high rate
tax imposed on food company by government of UK has also affected sales of the
organization as price of food product was increased in order to pay the tariff. Thus, this factor
affects the company growth in positive as well as negative way.
Social factor: This factor is consist of market trend customer taste and preference as well as
segmentation done by the government in order to target audience. It is one of the most
important factor that influence global market condition as it is dynamic in nature. Along with
this, Deliveroo has divided their customer on the basis of income so that it can it attract all
types of customer that will contribute in increasing their sales (Tumaku and Ren, 2020).
Moreover, company is facing issue in hiring employees as most of them are leaving country due
to poor GDP and it is looking for new students workforce for meeting their labour rate.
However, the organization is facing PR crises as students are not joining as per the demands. In
addition to this, it is to be suggested to company that it should make food product according to
customer taste and demands as it will allows Deliveroo to attract large consumer.
Technological: This factor is consist of advance tools and technology that has been used by
organization in order to increase growth of the company. Along with this, it also play major role
in influencing global market condition as it keeps advancing for time to time. Furthermore, in
the time of pandemic this factor has been important part in the success of the organization as
well as to improve the functional unit of the firm (Phan, 2021). In addition to this, Deliveroo is
making use of digital marketing by selling their food products on various online platform and
social sites in order to reach their customer in limited frame of time. Furthermore, it is to be
suggested to firm that it should make use of data analytical tool in order to analysis about taste
and preference of customer as it will contribute in increasing sales of company as well as build
healthy relation with them. In addition to this, it can make use of affiliated marketing as it will
allow organization to increase brand awareness in the market area.
Environmental: The company is following CSR policy in order to protect environment from
hazardous substance. Along this, it make use of paper bags in order to attract large customer as
well as to save environment. Deliveroo actively works with local European authorities to help
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