Influence of Globalisation on Organisational Governance and Leadership

This report analyses the influence of globalisation on organisational decision making and strategy. It highlights the key factors of cost, market, environment and competition that can affect global commerce and trade. The report also discusses the strategic challenges faced by organisations when operating in a global environment, the influence of globalisation on organisational governance and leadership, structure, culture and functions, and the influence of ethical and sustainable globalisation functions.

Global business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASKS/MAIN BODY.....................................................................................................................2
P1. Analyse key factors of cost,
market, environment and competition that drive global commerce and trade ..........................2
P2. Strategic challenges faced by organisation when operating in a global environment .........4
P3. Influence of globalisation on organisational governance and leadership, structure, culture
and functions ..............................................................................................................................6
P4. Influence of ethical and sustainable globalisation functions ...............................................6
P5. Different ways of decision making can work effectively in a global context .....................7
P6. Various routes for internationalism......................................................................................8
Various routes for internationalism are explained below- .........................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

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INTRODUCTION
Global business environment refers to the environment under which various business
operate that helps all the countries to come together and create more employment opportunities
that will further result into exchange of new ideas and new information. The report will highlight
the the influence of globalisation on organisational decision making and strategy. The company
chosen for the project is Deliveroo which is a British food industry which is headquartered in
London and founded by Will Shu and Greg Orlowski in the year 2013. As the company receives
orders through its main app or websites and then the employees take orders from restaurants that
provides delivery for the customers. The report will further elaborate the key factors of cost,
market, environment and competition that can affect the global commerce and trade (Hoberman,
2020). There are various type of challenges that are faced by the chosen company while
operating in the global environment such as cultural differences, language barriers, inflation rates
and many others (O'Sullivan, 2019). The company is also planning to expand its business at
global level so that it can become one of the leading organization in the present environment.
The report also includes various analyse of the factors such as driving globalisation and strategic
complexities connected with operating in global environment. Further, it helps in ascertaining
the level of influence in the globalisation because of various factors which are interlinked with
the organisation by various routes to go internationalisation.
TASKS/MAIN BODY
P1. Analyse key factors of cost,
market, environment and competition that drive global commerce and trade
There are various type of factors of cost which are explained below-
Price of competing firms
It is also important to take care of the prices of the competitors so that it can manage according
to that. In the market, the competition is on extreme level so it is important to keep the prices
low.
Purchasing power of the customers
It is also important to make sure about the price and the customers that how much they can
purchase (Perlas, 2019).
There are various type of factors of market which are explained below-
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Geographic Market
While operating business, it is important to understand the trend of the geographic regions so that
the customers can be monitored as per their situation in the market. It also allows to identify the
features of all the products as per the preferences of the consumers.
Demographic Market
Such market comprises of various factors such as occupation, age, gender, income, religion,
ethnicity and many others that can be used in order to fix the price of the products so that more
people can make purchase.
There are various type of factors of competition which are explained below-
 Price wars-Company may face the issues in the case of price in order to capture the
customers so that the market share can be increased. Such issue can be beneficial mainly
for the customers that is why they can get the goods and services at the lower prices.
Such conflicts affects both the competitors as none of them can generate much profit on
the goods (Ricci and et.al., 2021).
 Imitators-When the new product is made and introduced in the market other competitors
can make and offer same product at the lower prices.
There are various type of factors of environment which are explained below-
Climate change
If there is any change in the climate then that can affect the supply chain of the company that
further tend to increase the costs for the raw material (Thomas and et.al., 2021).
Natural disaster
This key factor leads to create the damage of land, property and even lives of people that can
create a whole situation of stress for the business.
Trade and commerce is also affected by exchange of cultures with the help of travelling
and trade under which the globalisation led to elevate the production of goods and services
( Henry, 2021).
Technological advancement – This factor is connected with the technology and innovation that
further can be used to influence the audience to increase the overall organizational performance.
In reference to the chosen company, various factors for example new technology, digital
payment, innovative delivery and others can be implemented and introduced in the continuous
changing environment that can help to drive global trade and commerce globally.
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P2. Strategic challenges faced by organisation when operating in a global environment
Strategic challenges are those challenges that affects the future success of the company. There
are various challenges which are faced by the organisation so that it can face the global
environment which are explained below-
Strengths
 In the United Kingdom, it is one of the
strong and growing market.
 The chosen company is easily able to
attract the customers and also convince
them to believe that Deliveroo is the
part of life.
Weaknesses
 Due to pandemic, the whole mankind
faced the negative effects and it has
also lead to bring new challenges in
the food industry that is why the
company was not able to tackle with
the cost efficiently .
 The work is dependant on various
factors such as drivers that can be
difficult to manage and deal with them
and moreover, the drivers are not able
to find the address.
Opportunities
 As the company any is already doing
great in its segment so, it can further
expand into new market that is grocery
delivery market (Velikorossov and
et.al., 2020).
 The chosen company can make use of
technology in order to keep the
customers satisfied. If the technology is
updated then, the customer will be able
to explore more.
Threat
 The market of the food delivery is very
grand and easy to enter as it requires
less requirement of capital that makes
the food delivery industry is an easy
market to enter. Its competitors such as
DoorDash, Uber Eats, Food Panda,
Grab Hub and many others.
 Due to Brexit, London Stock Exchange
is no longer dominant in Europe.
With the help of PESTLE Analysis the situation can be understood and analysed for Deliverroo
which is explained below-
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Political If there are any changes in politics, rules or regulations that may impact the
operations of the business. As per the chosen company, the political stability
allows it to be more stable and be more productive as it can predict the
trends of the market. That further helps the investors to monitor the
performance of the organisation. As the set up of the company is in many
countries and all the countries have some political tensions and such
tensions can affect the growth of the company. It may also lead to restrict
the growth opportunities of the business in the market.
Economical Such factors can affect the performance of the organisation in the market
that comprises such as disposable income, interest rate, gross domestic
product or unemployment rates. As per the given case, it is necessary to
understand the interest rate, the situation of market and many others so that
the chosen company can ascertain such factors which can be considered by
Delievroo in order to make the best decisions.
Social Another factor that create a major impact on the company is the
socioculturalism, age, gender or various social demographics. As per the
given case, the company make use of the marketing department by utilising
the information that can be retired from social analysis in order to target the
potential buyers (Wilkinson, 2021).
Technological This factor helps the overall business so that the internal processes can be
enhanced but these factors can impact the company in both positive and
negative manner. Delieveroo captured the technological trend of the market
that further supports in enhancing the profitability of the company.
Legal Such factors also affects the company and its activities such as employment
laws, antitrust laws and many other laws as per the given company, it can
not enter into a new market without understanding the legal aspects of that
country and if such aspects got ignored then it many bring some serious
trouble for the company.
Environment
al
Nowadays, the market is getting aware about the use of eco-friendly
products so, Deliveroo has adopted many green businesses practises in order
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to build the trust of the customers (Gentry and Gordon, 2019).
Recommendation
It can be concluded from the above analysis that the chosen company is operating in the
complex scenario that goes through various changes, dynamic environment and new market
trends that moves around the legal system. As the changes are increasing because of frequent
changes in the policies of the government so, the company must be updated about the steps
taken by government that can be done by putting the government as the main priority by
developing the different industry.
P3. Influence of globalisation on organisational governance and leadership, structure, culture and
functions
As per the McKinsey 7S Model, it helps to explain how different elements of the business can
affect the overall effectiveness of the company. It also considers various factors such as strategy,
structure, system, skills, styles, staff and shared values. The company can focus on staff as it
contains the talent management with various human resources that further helps in making the
best decisions by keeping the best rewards system, training and recruiting. It also presents the
number of staff who are engaged in the company's activities to attain the success and growth.
Various departments that have professional staff can allow to bring new opportunities so that
they can compete better at international level with other competitors. This will help the company
to improve the performance of the company by making the best utilization of the staff with the
help of implementation of the best strategy (Franko, 2019).
As per the Hofstede’s Dimensions of Culture, the company can use the dimension of the
Masculinity/ Femininity as this dimension is required for the whole society. As the name
suggests that the masculine aspect of the dimension will allow to present the level of
achievement, assertiveness, heroism and many other for the success of the company. On the
other hand, femininity denotes the ways of caring for the weak, modesty, cooperation and many
others. It can be said that all the country has its own type some are masculine or some are highly
feminine.
P4. Influence of ethical and sustainable globalisation functions
Ethical globalisation refers to is the area that which consists of ethics, transforming information
combination and interaction which is used in order to keep the smooth functioning of the concern
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business. Deliveroo is required to be targeted on the equal opportunity to all people so that the
positive environment can be maintained at the workplace among the employer and employees
which can help to make the business more successful by managing all functions and activities
properly Cailluet, Gorge and Özçağlar-Toulouse, 2018).
Sustainable globalisation plays an important role in expanding the business by focusing
on sustainability by taking care of customers and it can be used by the company so that it can
attain the targets of the business in order to deal with the competitive environment. As per the
given case, the company provides the range of food products and services so that the customers
can be influenced and it can further expand into global market by creating sustainable
globalization such as minimum wastages, recycling resources, scare resources effectively that
can help to keep the operations smooth in international market in order to achieve the desried
goals of the company. This also supports in influencing the people by offering better quality of
products which can lead to bring new opportunities to grow business.
The effect of sustainable globalisation on the various functions of business are explained below-
Finance: Department of finance in the Deliveroo is required to arrange fund from various
sources that can directly affect the performance of the business in the market. It is also important
to make use of the funds which are available in the company so that the changes can be made in
the existing sales. If the funds are not managed properly then, it can create an issue while
expanding the business.
Marketing: When the company wants to influence number of customers globally,
marketing is such factor which is considered as an important function that focuses on the
customers that can develop the overall organizational performance. The chosen company can
make use of various marketing channels such as social media, digital marketing, print media and
many others that will affect the globalization (Beck, 2018).
P5. Different ways of decision making can work effectively in a global context
By defining the problem, under this the company can make a list of problems and the solutions
available. The information can be gathered by discussing with stakeholders, individuals
regarding the problem in which the data can be gathered by the help of benchmarking, sources,
various events and interviews. The company can further use the best options so that they can
evaluate a wide range of options. By considering the best action plan some competitive solutions
will bring the best decisions. Once the decision is taken, it is also important for the company to
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monitor the decision. In order to mange the various activities which are essential while making
the best decisions in order to improve the performance of the business. Deliveroo is
multinational company that helps in make appropriate decision with the help of various points
such as -
 Visionary – It is defined as the goals such as long term goals which can be used and
decided by organization after analysing the overall environment of the market that
directly affects business and the competitors. It will be difficult for organization to make
decision, if goals of company are not defined. In reference to Deliveroo, management is
important because it decides the target by collecting information with the help of
bringing the change in their working that can further support the business in international
market. Effective plans can be made in order to reach long term goals of company.
 Guardian- By managing work effectively, the best decisions can be made as the
guardian plays a major role in collecting data, as it helps to evaluate the information and
strategies which is formulated by managing all functions such as finance, HR, marketing
and many others. This will help the Deliveroo to grow their business in the global market
and support their business so that it can achieve the future targets of the company.
 Sources of fund – The sources of funds for example bank loan, friend, sale of assets and
family. It is must to manage the funds properly so that the business can be expanded in
the international market by buying raw material, arranging staff, using marketing channel
to reach new customers base.
P6. Various routes for internationalism
Various routes for internationalism are explained below-
 Franchising- It is said to be a form of marketing by which the company can expand its
business by giving the right to sell the products of the business by using the franchisor's
business strategy. The main benefit for choosing this route that by opening a franchise
the customers already know about the brand as it is a well established already in the
market ( Ansoff and et.al., 2018) . Therefore, there will be less chances of getting failed
as compared to new business ides or solo business idea. It is defined as an agreement
where one organization can get the right to operate the business with already existing
brand that can help to improve the brand image in the market with better level of
performance. The management must have proper skills that work collectively in order to
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make the same products that can assist the business to enhance the performance.
Deliveroo can choose this route so that it can expand its business globally by using
franchise that is directly connected with the organizational performance globally. One of
the main reason is that it requires minimum investment and official permission to operate
business in global market.
 Joint venture- It is a route by which the various resources are united as partnership and it
allows to have a exposure to the new market by sharing the level of risk among the
various members. That also enhances the access to new field of knowledge that can make
the staff more specialised. It is done by two parties by combining their available
resources and ideas to spread out their business operation in different country that can
help to grow a business continuously with the same pace. As Deliveroo is large size
organization that can form joint venture with another organizations which are already
doing great in their field and settled in international market. It will help to increase
various factors such as productivity, sales, and profitability percentage by expanding in to
global market and run business accordingly. The joint venture allows to increase the
business activities at global level. On the another hand, in such setup all the members are
equally responsible to share the profit and loss of the company.
 Foreign direct investment- It refers to the purchase of the interest that to in another
country so that the operations can be expanded in a foreign company. It is route by which
the investment is made by controlling the ownership in a business by one country to
entity based in another country (Amason and Ward, 2020).
Key barriers are explained below-
 When the business is new, the experience is less and there can be clashes of cultures that
take place between the two companies with the language barrier too. The members can
have different conclusions and opinion of the same discussion.
 As the objectives of the ventures are not clear that lead to bring miscommunication
between the partners that can be risky for the future of the company. It is also not easy to
deal with another business as that can be a complex situation and it also takes times in
order to build new relationships.
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From above explained routes, Deliveroo is recommended to use the Joint venture route as it is
a route by which the various resources are united as partnership and it allows to have a exposure
to the new market by sharing the level of risk among the various members.
CONCLUSION
It can be summarised from the above report that while operating the global business it is
essential to operate it effectively by selling the products worldwide. The report explained the role
of key factors mainly of cost, market, environment and competition that affects the global
commerce and trade. The report also demonstrated the influence of globalisation on
organisational governance and leadership, structure, culture and functions with the assistance of
Hofstede’s Dimensions of Culture and McKinsey 7S Model. It further explained the influence of
ethical and sustainable globalisation functions with different ways of decision making can work
effectively in a global context. Therefore, best decisions can be made in order to get the work
done in the global context and there are various routes for internationalism with various barriers.
Moreover, the restriction of government and various economical changes faced by company that
can create issues in the daily operations of the company.
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REFERENCES
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