Drivers and Challenges of Globalisation and their Impact on Strategic Directions

This report discusses the impact of globalisation on Deliveroo, a British multinational organisation that operates in the food delivery sector. It covers the concept of globalisation, PESTLE analysis, key driving factors, challenges and complexities, and recommendations on how to overcome them. It also evaluates the impact of global operations on Deliveroo using McKinsey's 7S model and Hofstede's Dimensions of Culture theory.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PART-1 ...........................................................................................................................................3
Concept of globalisation ........................................................................................................3
PESTLE analysis ...................................................................................................................4
Key driving factors of globalisation.......................................................................................5
A critical evaluation of the challenges and complexities globalisation brings to an organisation
................................................................................................................................................6
Recommendations on how such challenges can be overcome...............................................8
PART-2 ...........................................................................................................................................8
McKinsey’s 7S model of SASOL Limited ............................................................................8
Evaluation of how the above has been influenced by global operations and how the
organisation has adapted to operating in a global market....................................................10
Hofstede’s Dimensions of Culture theory............................................................................11
An evaluation of ethical and sustainable factors that the organisation has to consider in a
global market........................................................................................................................11
Evaluate the different ways decision making can work effectively in a global context......12
Evaluation of the range of strategic global expansion routes...............................................13
CONCLUSION .............................................................................................................................14
REFERENCE.................................................................................................................................15

INTRODUCTION
Global business environment is defined as the environment in different sovereign
countries with exogenous in the home environment of organisation. It affects decision-making
process of business in terms of resources, capability and others. In this report chosen
organisation is Deliveroo which is British multinational organisation that operate in food
delivery sector. Headquarter of respective organisation situated in London, England, UK and
established in 2013. Around 2,300 employees are working with organisation. This report covers
business environment, pestle analysis, opportunities and challenges that are faced by the
organisation. Furthermore, impacts of globalisation forces on business governance, leadership
and functions are discussed through McKinsey's 7S and Hofdtede's dimension of culture model.
Ethical and sustainable factors that are considered by organisation in global market. Different
ways of decision-making in global business environment and various routes of
internationalisation mentioned in this project report.
PART-1
Concept of globalisation
Globalisation is considered as the term or process through business of different countries
are getting connected with each other. It is the process of interaction as well as integration
among different people, country, organisation as well as government in worldwide. Globalisation
is describes as growing interdependence among culture, population and economy. It is the cross
boarder trade which is related to products, services, technology and flow of information, people
as well as people. Through adopting globalisation, business can ensure its global reach and gain
competitive advantages. Business can internationalise its activities and operations through import
and export that helps business to maintain its global reach and provide its products and services
across national boundaries. Globalisation is considered as the integration of different factors such
as social, political and cultural (Appiah-Adu, Okpattah, and Amoako, 2018). Deliveroo use the
concept of globalisation to provide its services across national boundaries. Respective

organisation operates its operation in almost two hundred locations across United Kingdom,
France, Italy, Singapore, Hong Kong, Australia and various other so globalisation help business
to attain its determined objectives related to growth and development.
PESTLE analysis
PESTEL analysis: Pestle analysis is defined as the strategic planning and management tool that
help business to identify external factors which impacts business operations and functionality in
positive and negative manner. Factors of pestle analysis in the context of Delivroo organisation
are mentioned below:
Political factors: Political factors have strong influence on business sustainability and
profitability of Deliveroo organisation. Presence at international market increase the
organisational sensitivity to change in political environment in different countries. There are
various factors are included in political factors such as political stability or instability, changes in
government policies, pressure of governance system that impacts business performance and
functionality (Barbopoulos,Danbolt,and Alexakis, 2018). High political stability of UK are the
factors that help business to gain sustainable competitive advantages on the other hand, regular
changes in government policies increase uncertainty in environment and affect business
operations. High taxation rates and trade restrictions that impacts on internationalisation process
of business.
Economic factors: It is important for organisation to consider various economic factors
in business policies such as foreign exchange rates, inflation, saving rates and labour market
conditions. Regular fluctuation in currency rates and others rates are the factors that create
challenge for business in the process of expanding business in other country. Different country
has their different market conditions and financial market efficiency that impacts business
performance and effectiveness. Delivroo examines all these factors properly and consider them
in business decisions to survive in different countries.
Social factors: Organisational culture is influenced by the societal norms, values and
trends. There are various factors are included in social factors such as demographic trends,
shared beliefs and consumer spending pattern that impacts Delivroo performance and
functionality. E-commerce or online shopping is the factor that helps business to increase its
sales and profitability ratio. Culture is the important variable in international market. Each
society consist different norms and values that shape consumer behaviour (Busse, Meinlschmidt,

and Foerstl, 2017). Respective organisation analyse these trends and consumer behaviour of
different country and provide them products accordingly that help business to gain competitive
advantages.
Technological factors: Advancement and diffusion in technology across globe is the
factor that enhance the importance of understanding the different technological aspect in the
process of taking strategic decisions. Delivroo that operates in food delivery sector adopts
different technological factors such as social media marketing, bring innovation and conduct
research and development that enable business to gain higher market share and gain competitive
advantages then other competitors. Adoption of latest technologies reduce business cost and help
to conduct operation in different country as well with great efficiency.
Environmental factors: Growing consciousness regarding environment aspects and
regular changes in climate condition enhance the importance of considering environment factors
in business policies. It includes different environmental standards, regulations and laws that vary
across different markets (Charter, ed., 2017). Delivroo invest in renewable technologies that
ensures long term sustainability of business. Respective organisation also adopts waste
management tools analyse weather conditions and situation that help business to run operation in
smooth manner even in different countries. Delivroo uses eco-friendly techniques to deliver
products that reduces carbon emission in environment.
Legal factors: It is very important for Delivroo to analyse different legal regulations and
regulatory structure before entering in new market place. It includes employee protection laws,
consumer protection laws, health and safety regulations that must followed by organisation to
ensure their smooth working in different environment. Respective organisation follows all these
laws and regulations that help business to attain its all goals and objectives in efficient manner. If
business fails to follow these laws than it has to face various legal obligations and fines that
impacts business reputation.
Key driving factors of globalisation
There are various factors that drive the concept of globalisation. Factors that impacts
Deliveroo organisation in internationalisation process are mentioned below:
Different level of economic integration: Economic integration is defined as the
unification of economic policies of different states that have tariff and non-tariff restrictions of
trade that impacts business performance at international level (Cullen, 2017). Along with that,

Deliveroo considers different level of economic integrations such as free-trade areas, customer
union, economic and monetary union that help business to perform accordingly.
Trade and investment opportunities: Through conducting business operations at
international level, business can gain investment opportunities that lead business towards
attaining determined goals and objectives with efficiency. Trading in different country is the
effective driver that facilitates business expand business operations.
Technological advancement: Advancement in technological aspects is the factor that
helps business to expand business operations on other country. Online shopping helps business to
reach large number of customer base and increase business sale. Technology facilitates
Deliveroo to conduct borderless transactions by e-commerce and electronic banking.
Cost of globalisation: It is the important factor that influence the decision-making
process of business to expand business operations in other country (Eddleston, Banalieva, and
Verbeke, 2020). Business has to high amount of investment to provide its products and services
in international market.
Market conditions: Every country and market possess different market conditions that
influence the housing market in particular area like cost of living, supply and demand,
demographics and various other. Deliveroo analyse these market trends and conditions before
expending business operations.
Competitive environment: In international business environment high level of
competition is found because number of organisation provides similar products and services that
impacts business operations. Deliveroo analyse competition level in market than take decision of
expansion in international market.
All these factors provides benefits and challenges to business to conduct its operations at
global level. Deliveroo analyse these factors and take decisions accordingly.
A critical evaluation of the challenges and complexities globalisation brings to an organisation
Global business environment is considered as the interaction of local and global market
conditions that enable business to provide its products and services to international market. In the
concept of globalisation, various factors and aspects are included that influence the decision-
making process and strategies of business (Girchenko, Ovsiannikova, and Girchenko, 2017).
These factors create challenges and enhance complexities for business to expand business
operations in international market. Deliveroo is the organisation that involve in food delivery

services and operates in various country such as Singapore, Hong Kong, Australia, United
Kingdom and various other. In operating business activities at international level, business faces
various difficulties that impacts business overall performance. These challenges and
complexities are mentioned below:
Higher investment cost: The concept of globalisation enhances various challenges and
complexity for business. Organisation requires higher investment to provide its products and
services at international level. Investment is required for developing infrastructure, producing
products and for business to conduct operations in new country.
Legal and regulatory structure: Every country has their different laws and regulations
that create complexity for business and in these regulations continuous changes are happened
that impacts business performance and functionality. It is important for Deliveroo organisation to
access legal expertise that help business to understand in-house laws as well as compile them
with applicable regulations in order to conduct business operations in efficient manner at global
level.
Payroll and compliances challenges: Organisation faces various obstacles and problems
in expanding business operations at international level such as managing overseas payrolls as
well as maintaining compliances with changing taxation laws and employment regulations
(Gorynia, Trąpczyński, and Bytniewski, 2019). It creates difficulty for management of
Deliveroo to manage operations in multiple market.
Global expansion difficulties: In the process of conducting business operations at
international level, business faces various difficulties that directly impacts on business
operations. Deliveroo gather all information and navigates new legal system in order to run
business operations efficiently. In global business environment laws related to employment,
taxation and other compliances are regular changing that impacts create challenge for business.
Business faces various risk in international market that impacts business overall
performance and efficiency. Diversification strategies is considered as the riskiest strategy that is
related to providing new products in new market place (Haque, Aydin, and Usyal, 2017). It
creates risk for organisation because market is totally new for business and it has no idea
regarding customer’s needs, preferences that impacts business sales. It is important for
organisation to analyse requirements of customers and current market trends before taking
decisions to enter in specific market place.

Recommendations on how such challenges can be overcome
Business faces various challenges and difficulties to expand and conduct business
operations at international level. There are some recommendations are providing to Deliveroo
organisation to overcome challenges in efficient manner. It leads business towards attaining
determined goals and objectives with great efficiency and effectiveness. Some recommendations
are mentioned below:
 It is recommended to Deliveroo organisation to adopt latest technologies for delivering
food products to customers with efficiency that enable business perform its operations in
smooth manner to attain determined goals and objectives. Implementation of new
technology, initially increase cost of business but provide long-term sustainability and
profitability to business (Ilie, 2019). It provides competitive advantages to business over
other competitors.
 Deliveroo organisation should evaluate or analyse changes in political as well as
international regulations that help business to manage these changes in efficient manner.
Proper understanding of regulations help business to stay relevant in international market
and help to gain sustainable competitive advantages.
 It is recommended to Deliveroo organisation to compile all safety protocols in delivery
operations that enable business attract higher customer base and maintain strong image in
competitive business environment. It reduces the interruption of government in business
operations of Deliveroo organisation.
 Deliveroo organisation should conduct proper market research than develop effective
policies and strategies related to supply chain, competitors and changes in legal
regulations. It is suggested to organisation to recruit skilled employees who contribute in
attaining business goals and objectives. Organisation also provide compensation to
employees as per their performance that facilitates business to manage working
environment in best possible manner.
PART-2
McKinsey’s 7S model of SASOL Limited
McKinsey 7's model is defined as the strategic technique or tool which is used by the
organisation for evaluating and analysing business performance. In model seven elements are

included that enable business to analyse business structure and lead it towards getting success.
The concept of globalisation impacts on Deliveroo's operations, structure, supremacy, leadership,
and culture. Factors of McKinsey 7S model are mentioned below:
Strategy: Deliveroo organisation develop effective business policies and strategies for
accessing business internal and external environment. Respective organisation ensures that all
strategies and policies are communicates at all hierarchical level of business so, employees can
perform business operations in efficient manner. Appropriate strategies provide guidance to
employees that enable them to gain desired outcome.
System: System of organisation is considered as the technical infrastructure that helps
business to manage workflow with efficiency and take proper decisions that helps business to
lead in right direction. Deliveroo develop effective well-defined system that helps business to
improve overall effectiveness and efficiency of business (Kim, Kim, and Jeon, 2018). In business
various department such as marketing, human resource, sales and finance are work together so
effective system enable business to run operations of all these departments in efficient manner.
Structure: Structure of organisation shows effective integration between different units and
departments of organisation that help business to attain defined operations in best possible
manner. Deliveroo organisation adopts line and matrix organisational structure that help business
to perform all operations with efficiency. Respective organisation ensures that high coordination
and proper flow of communication at all department of organisation in order to attain business
goals with effectively.
Skills: Skills are the combination of different organisational human resource capabilities that
enable business to attain sustainable competitive advantages in global business environment.
Deliveroo has skilled, capable workforce because respective organisation emphasis on recruiting
candidates on the bases of their qualification that matches the requirement of specific job
position in organisation. Deliveroo also provide training to its employees to improve their
capabilities that enable them to contribute in attaining business objectives.
Shared values: Shared values of organisation includes various factors such as defined
standards, beliefs as well as attitude them help business to run its operations with efficiency.
Value of Deliveroo is to deliver products to customers with having good quality that attract new
customers and retain existing one for longer period of time (Murray, Skene, and Haynes, 2017).
Managers of Deliveroo organisation convey all values and beliefs at all level of business that

enhance contribution and commitment level of employees towards business goals. Organisation
also promotes various values such as creativity, accountability, trust, honesty in business
environment.
Style: Deliveroo adopts supportive as well as participative leadership styles in business
environment in which organisation includes employees in decision-making process that
motivates employees to perform in efficient manner to attain organisational objectives. Leaders
of Deliveroo interact with employees on regular bases and resolve their quarries that enhance
their commitment towards attaining business objectives.
Staff: Deliveroo organisation has skilled, experiences and capable employees who are able to
perform their operations with efficiency. Organisation implements effective recruitment process
to hire suitable employees. Deliveroo is the organisation that operates its operations at
international level so, efficient and skilled employees provide competitive advantages them other
competitors and help to attain business determined objectives.
Evaluation of how the above has been influenced by global operations and how the organisation
has adapted to operating in a global market
In global market place, number of organisations provide standardise products to its
customers at affordable prices that impacts business efficiency and effectiveness. McKinsey 7s
model contains various factors that facilitates business to gain competitive advantages at global
level. These factors are related to structure, system, style, staff, skills, strategy and shared values.
These factors are used by the Deliveroo organisation in developing planning and strategies that
help business to accomplish goals and objectives with great effectiveness (Murray, and Boron,
2019). If business has efficiency in these factors than it help business to gain competitive
advantages whereas improper business structure, system, strategies and unskilled employees
impacts business performance at international level.
Deliveroo organisation develops systematic business approaches to conduct business
operations at international level. Organisation also defined different regulatory terms such as
packaging, labelling and other things related to products that improve business sales in global
market. Effective marketing and promotional activities are conducted by the organisation that
help it to perform with efficiency in global market.

Hofstede’s Dimensions of Culture theory
It is the strategic framework that help business to access the differences between different
countries. Factors of Hofstede model in the context of Deliveroo organisation are mentioned
below:
Power distance index: Power distance index is related to inequality as well as power factor
which are being tolerated. These aspects are determined as the point of view of followers.
Deliveroo organisation consist individuals and leaders in business that enable business to
improve its working efficiency that meet organisational current requirements.
Individualism vs. collectivism: Individualism vs. collectivism are the dimensions that
reflects the degree through with societies are integrated with group and their perceived
dependence as well as obligations of groups (Nemkova, 2017). Deliveroo organisation adopts
collectivism dimension in which organisation attain business collective goals with support of
employees.
Uncertainty avoidance index: It is related to extend that can be tolerated uncertainty and
ambiguity. It determined that hoe business deal with difficult situations to attain business goals.
Deliveroo has low uncertainty avoidance index that shows that organisation has low tolerance
related to uncertainty and risk-taking. There are various laws are adopted by organisation to
reduce uncertainty.
Masculinity vs. femininity: It is dimension of cultural model is related to the preferences of
society towards behaviour, achievement, equality and attitude. Deliveroo organisation
implements masculinity dimension in business operations that is evaluates through fierceness
and deficiency.
Long term vs. short term orientation: It is related to the time horizon which is used by
organisation to implement planning to accomplish business goals and objectives with efficiency.
Deliveroo adopts short- and long-term goals to achieve determined objectives on business on
time.
An evaluation of ethical and sustainable factors that the organisation has to consider in a global
market
In business various ethical and sustainable factors are used by the organisation to take
effective decisions in order to attain business determined goals and objectives. Deliveroo

organisation develop various law and regulations that provides competitive advantages to
organisation over other competitors. Some factors are discussed below:
Environmental and regulatory consideration: It is essential for organisation to follow all
laws and regulations related to environment that ensures business sustainability than other
competitors. Deliveroo develop certain laws and regulations that protect environment from
harmful impacts and reduce the level of competition. There are latest technologies are used by
the organisation such waste management and recycling that provides sustainable advantages.
Social and cultural factors: These are the factors that have power to affect business
operations at global market. It is important for organisation to consider these social and cultural
factors in business decision-making (Oumlil, and Balloun, 2017). Deliveroo evaluate these
cultural and social factors of specific country that help to perform operations there and satisfy
needs and demands of customers.
Cultural marketing consideration: Cultural marketing is not only the factor which is
important to conduct operations at global level but including cultural norms in marketing is
important to gain sustainable competitive advantages. Deliveroo organisation conducts various
marketing and advertisements to spread social message according to cultural requirements.
These social and ethical factors facilitate business to perform efficiently in international
business environment.
Evaluate the different ways decision making can work effectively in a global context
Globalisation is considered as the aspect that includes cross boarder activities such as
selling products and services in different country. It removes various trade barriers that enable
business expand business operations. Deliveroo develop various strategies to gain the
opportunities the opportunity through reducing overall cost of production. Some decisions
related to global market are mentioned below: Leadership and decision-making: The concept of globalisation is getting impacted by
the impact the leadership of business. Organisation has changed authoritarian leadership
to participative leadership in which business include employees in decisions that
improves their performance and morale. Deliveroo uses participative as well as
transformational leadership to perform business operations. Risk handling: Business takes various decisions in terms of entering and exiting from
current global market place. Deliveroo implement risk management principles as well as

formulates effective internationalisation strategies that enable business to gain
competitive advantages.
 International diversification: In international business environment, high risk is
involved, so business take decisions in terms of diversity that enable business to gain
competitive advantages. Deliveroo organisation analyse business environment than take
decisions accordingly that help business to gain sustainable competitive advantages in
international market.
Evaluation of the range of strategic global expansion routes
There is range of expansion routes are used by organisation that enables business to enter
in international market and attain higher market share. Deliveroo operation its activities in
various other countries that enable business to maintain its global reach and enhance
profitability. Some routes of expansion are mentioned below:
Exporting: Exporting is the effective method of internationalising business operations in
other country. Through exporting, business can export its products and services in other country.
It contains low risk and it is the cost-effective method of expanding business in global market
(Seid, 2018). In the process of exporting different factors such as government, importer,
exporter and importer country are included.
Strategic alliance: Strategic alliance is defined as the arrangement between two or more
organisations to run defined project that contains mutual benefits for both parties. Each
organisation has their separated identity in strategic alliance. It helps business to gain
competitive advantages over other competitors and conduct operations in other country.
Foreign direct investment: Foreign direct investment is considered as the process that enable
business to invest in foreign market to expand business operations. It is cross boarder investment
through which resident investor of specific country influence the resident enterprise of another
country. It is the effective method through which business controls the ownership of other
country’s business.
Deliveroo organisation uses foreign direct method to expand business operations at
international level. It helps business to attain the objective of higher sales and profitability.
Organisation enhances quality of its services through analysing needs and demands of expanding
country customers.

CONCLUSION
As per above report, it can be concluded that business environment consists internal as well
external factors that impacts business performance and functionality in positive and negative
manner. Business develops various related strategies and policies that enable business to handle
critical situations and gain competitive advantages. Whereas global business is related to
conducting business operations across national boundaries. Organisation uses different models
such as McKinsey’s 7S model to analyse business structure and develop effective strategies.
Business uses different methods of internationalisation that help business to expand its
operations in other country.

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