Drivers and Challenges of Globalisation and their Impact on Strategic Directions

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,