Unit 32 Business Strategy: Deliveroo's Macro and Internal Analysis

This report provides a comprehensive analysis of Deliveroo's business strategy, focusing on its macro and internal environments. It begins with an introduction to business strategy and its importance for organizations like Deliveroo, a food delivery company. The report delves into the macro environment using PESTLE analysis, examining political, economic, social, technological, environmental, and legal factors influencing Deliveroo. It then explores Deliveroo's internal capabilities, applying frameworks like the Resource-Based View and VRIO analysis. The report further analyzes the competitive landscape using Porter's Five Forces model, assessing the competitive forces within Deliveroo's market sector. Finally, the report discusses strategic planning, including relevant theories, concepts, and models, and provides strategic recommendations for Deliveroo. The report concludes with a summary of the findings and a list of references.

Unit 32: Business
Strategy

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
PART 1.......................................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1/M1/D1 Explain the impact with influence of macro environment in given organization with its
strategies..................................................................................................................................................4
TASK 2.......................................................................................................................................................7
P2/M2/D1 Provide internal environment and its capabilities in organization with appropriate
frameworks..............................................................................................................................................7
TASK 3.......................................................................................................................................................9
P3/M3/D1 Explain Porter’s Five Forces model and also provide competitive forces in given market
sector of organization..............................................................................................................................9
PART 2......................................................................................................................................................13
TASK 4.....................................................................................................................................................13
P4/M4/D1 Provide theories, concepts and models, interpret also give strategic planning for a given
organization...........................................................................................................................................13
CONCLUSION.........................................................................................................................................16
REFERENCE............................................................................................................................................16

INTRODUCTION
Business strategy is a process which is being used by the organisation in order to expand
the market strategy with proper manner. It helps out to maintain the strategies and tactics in a
better way so as to seek a result through which benefits and growth can be attained by a
company. In various means it implies the setting up of goals, actions and all the plans through
which the business can be outlined and will able to compete with the significant market area
through its products and all the services (Farrukh, and et. al., 2020). In order to compete it is
important that all the organisation should implies to take various factors which in walls in the
market segment through which competitors and all the company structures can be framed out by
its basic strength and weakness.
Business strategy aims to provide a proper vision and direction to the organisation and
also helps to maintain a clear objective for the companies. It helps out to implement the
strategies through which the company can implement the growth with all the core capabilities
and also cover out the market shares through which the production can be enhanced. As for
Deliveroo it try to approach by the business strategy to all the networks and sectors by preparing
the food and delivering it to the customers. The organisation chosen for this report is Deliveroo
as this is a food delivery company headquartered in London, UK. It is a multinational brand
which used to supply in various countries as it has so many subsidiaries and networks being
made from all the offsite restaurants and delivery preparation of food items (Rivera, 2019). This
report will cover all the important impacts of the macro environmental factors with their various
strategies and decisions and also the internal capabilities of the environment with their evaluation
in the competitive market by forces. Further it will cover the internal factors with concepts and
models of various strategic planning and also the objectives which help how to prioritise all the
tactic set up being used by the organisation in order to build it properly.

PART 1
TASK 1
P1/M1/D1 Explain the impact with influence of macro environment in given organization with
its strategies.
Macro environment is an important method and a condition through which the economic
range of the region and a company can thereby be analysed as it helps out to maintain and
influence within impact of external factors that are important for all the competitive edge (Wang
and et.al., 2020). It helps out the business to look out all the severable conditions in which they
will have to deal externally there are certain following framework which helps out to maintain
the business they are as follows:
PESTLE Analysis
It is an important framework through which the analyzation of all the macro
environmental factors can be deter mine in which hits out to know the details link of any
company and organisation as in for Deliveroo a company competitive factors are as
follows:
 Political: This factor relates to the political interference which can affect the
company. In relation to Deliveroo, the brexit May affect the business of the
company as there may instance when there is change in the policies which can
affect its operations. Moreover, the Brexit can affect the free trading in European
Union which can place heavy impact on its business.
 Economic factor: It relates to the aspects which can affect the economy such as
inflation rate, employment rates, etc. in context to Deliveroo, the inflation in the
economy of UK can result in hike in price that can lead to loss of customers and
this will mainly effect the company and there financial stability.
 Social: It covers all the social and cultural impacts like the supply, demand and
all the behavioural nature of the people through demographic change as in
Deliveroo After the coming of Brexit there is a lot of difference as the student
labourers faced out a heavy meet demand through which they were facing crisis

with all the new joinees. All the safety standards with all news employees and
health and training facilities for the food delivery is being maintained and all the
healthy food options that are being given by the cultural shift regarding to all the
areas where they used to begin their business. It focus to provide their all healthy
alternative in a meal to every kind of individual been passed participating over
there. Deliveroo tries to connect with the customers by taking their valuable
feedbacks and through which they maintain their food quality and delivery
services for all the individuals by satisfying the customers changing conditions
 Technological: it is concerned with all the new digital any innovation techniques
that are being used by the company (Ritter, and Lettl, 2018). Deliveroo Implies to
use various smartphone technology through which all the age groups of people are
linked and it helps out to maintain a low maintenance work force area that can be
communicated easily and also reduced at additional delivery methods. It serves
out to cover the demands that has been taken in or whether have been taken place
by directly communication through applications. They used to provide a delivery
volume with a proper maximum interest areas and also helps to frame the best
services that is being provided by them. Deliveroo use all the online mediums and
his create a positive factor for the company to reach maximum customers in the
lower interval of time and to satisfy the customers demand.
 Environmental: it covers out all the biodiversity and the environmental impact
that is being framed in any of the company and area. Deliveroo imports to make a
proper use of fleet bicycles through which to try to maintain the environmental
friendly services in order to reduce the pollution that is being covered by the cars
and all the delivery vehicles through which they used to adapt and environmental
change in a positive manner and also helps out by the communication of a support
business my profile providing the potential impact in the climatic conditions and
changes that are being made. Deliveroo tries to maintain a proper sustainable
changes in reducing the pollution which create a positive factor for the
environmental control.
 Legal: it covers all the important areas and the legal rights and duties that should
be implicated in the business as Deliveroo so that the company will work in non-

discriminatory method and they focus in giving proper equality to all working
employees in it (Ransbotham,and et. al., 2017). It give the better facilities
through which a simple self employed contract has been made just like Uber and
they try to maintain the relation in a proper platform and area so as to serve out
the better quality. As Deliveroo service to high number of customers to try to
maintain all the laws and regulations that are being given by the government
which is a positive approach by them by following all the norms.
Ansoff matrix
It is a Matrix which covered four important stages that are being required in the
organisation so as to plan the strategies for future and it maintains the outgoing source of the
business through which all the important areas is being sustained (Moktadir and et. al.,
2020)Deliveroo has various strategies that are being used in order to expand their business they
are as follows:
 Market penetration: it maintains the increasing in the sales with all the existing
products in the market. Deliveroo implies to use this as by maintaining all their
food products to be increased in the sale in their existing market with all the same
services that are being given by them earlier. This is mainly providing services in
the existing market areas with the existing product. Deliveroo can provide all their
food delivery services with a new approach to the customers in the same market
segment that has been used by them.
 Product development: it provides all the new services in the existing market
which will help out to outgrow in all the expanded areas. Deliveroo Can try to
maintain and adapt new techniques of delivery of food items as by applying the
digital mediums. in order to develop the service advantages through which it will
attract the customers as in their existing market areas so as to keep their customers
attracted towards them (Kong, and et. al.,2020). For instance they can try to make
valuable offers through which the customers can be attracted and some new
products and food can be given by them so that customers can find it attractive
and it helps the company to gain the benefits.

 Market development: it covers out entering into new market as through all the
existing products and areas Deliveroo companies in the country is in which the
delivery used to serve their products in a proper place within existing product that
is being sold by them as a new market area will help out to attract so many new
customers and by that they can increase revenue in a proper way. Deliveroo can
thereby expand their deliveries and food services in other areas through which
they can develop the market segment and also cover wide range of customers
loyalty by providing optimum services through their highly trained staff.
 Diversification: this implies on focus on the new market areas with a new
offering it is a risk factor as their all the new segments are being introduced the
Deliveroo can offer various new product in a new market areas of global countries
by expanding their business in a new market segment. It generally means
focusing on the new area with new services as it is the risk zone. Deliveroo
thereby enter in any other country with some new expansion other than their food
services and deliveries in order to approach to the marketing condition and to gain
advancement.
TASK 2
P2/M2/D1 Provide internal environment and its capabilities in organization with appropriate
frameworks.
In order to maintain all the internal factors of the environment in the organisation it is
important to explore and analyse various capabilities and objectives that are important for the
strategic approach (Pati, and Bandyopadhyay,2017). All the capabilities that are being used in the
strategies are through the process which helps out in the improvement and also in the betterment
of the business so that all the implication of competitive advantages in the market can be
circulated. As for the potential development and advancement of the company it is a prime
responsibility of the entire organisation to work on their internal edge through the various
methods and approaches. It considers outs all the internal capabilities which are being mentioned
below:
Resource Based view: It is mainly a managerial framework which helps out to provide and
determine the strategic resources through which sustainable competitive advancement can be

achieved. It mainly enables the competitive advancement in order to maintain the organisation to
lead a long-term performance with the help of resources that are valuable and rare. It helps out to
provide capabilities in order to formally different kinds of strategies and also help the companies
to carry on activities (Olson, and et. al., 2021). It lets out to maintain the equal importance to the
source of gaining the technological ways and the aspects through which the company can
generate profit. It considers out to be of two resources that can be tangible that required all the
capital, equipment and the building etc and on the other hand there is in tangible will which
cover the intellectual rights of all the organisation through which the resources can be applied in
an effective manner (Sandkuhl, 2017) . Resource based helps out to maintain all the allocation of
products with highest priorities in order to gain advancement and also the optimum utilisation of
the services that are being given by the companies. Deliveroo can thereby increase their
production and services and try to make the staff highly skilled regarding the customer base and
satisfaction by taking proper valuable feedbacks and trying to improve the quality of food
delivery services so that advancement in the sectors can be implemented. It should try to
prioritise all the maximum output for getting better results and revenues. Delivery or use the
strategy by providing and targeting the people who already use their sites for delivering of food
products and also to operate it in a proper manner so that they can serve the food that is given on
their sites on an optimum quality and best products
VRIO
It is a method which helps out to evaluate the organisations resources in the methods that
they are using in the competitive advancement of the company through this all the values and the
nature in which the company is been working valuated and enhanced. Deliveroo use this as
follows:
 Valuable: Deliveroo valuable resources are their skilled employees who used to work for
the organisation as Deliveroo is trying to operate all the technical advancement in their
delivery services and for that they need skilled workforce who also can operate the
delivery software in order to do all work on time. As with proper dedication level they
maintain a high image of the company. They are also being perceived through the
customer’s edge in the market. They train their employees regarding providing all the
delivery services on timely manner. Deliveroo is being engaged in corporate social
responsibility in all their business expansions and maintain a transparent environment

through proper delivery start-ups for business goals. They try to maintain the brand image
and valuable relations with the suppliers regarding the efficient distributions.
 Rare: The employees that are being working in the Deliveroo are known as rare factors
and resources as they keep look that no customers demand can be left unheard and with
that their networking sites through which they used to expand their delivery services and
technological area should always work in efficient way without any delay (Pramanik, and
et. al.,2018). The major competencies in Deliveroo or that covers a rare feature is their
international presence as they had expanded in various reason with their maximum
financial strength. They have a have problem-solving skill and work in teamswWith
proper high competitiveness (Jurišová, 2019).
 Imitable: Their food delivery chain methods are important source as it helps out to
maintain the growh. The major imitable are the quality of the product that is being
offered by them with all the locations of Deliveroo as they search multiple stores and has
expanded market communication.
 Organisation: Deliveroo tries to reach in all areas with better services, as they serve out
and ensure that the customers to get a better delivery experience (Munandar, 2017).
Deliveroo or thereby have developed the resources through which they maintain their
financial strength by merging with potential areas in competitive advancement and also
used technological integrations for smooth management and global operations. The try to
frame their employees and also invest in research and development so as to know the
market trends
TASK 3
P3/M3/D1 Explain Porter’s Five Forces model and also provide competitive forces in given
market sector of organization.
Porters five forces helps out to identify all the competitive nature and the advancement in
the companies through which the strength and weakness can be analysed and also their
opportunities in which they are lacking in the areas that should be maintained and advanced can
be framed out. In the context of Deliveroo It is being discussed below:

 Threat of new entrants: This is mainly where all the new market and the segments of
various companies and organisation used to be introduced in the market as this will affect
all the barriers in the profitable areas of the industry will be considerably falling down.
As in case of Deliveroo There are so many foods delivery start-ups that has taken place
that’s what is nearly moderate. As they try to maintain a proper loyal customer for the
companies And there has been various challenges and the consumers through which the
outcome the results and the areas that has been maintained in the distribution channels
they actually serve out to produce a proper distribution network which helps them out to
access in all the areas in the customer benefit and also regulates the entry of various
investment in the delivery process through which they used to tackle up the long-term
investment and also a brand loyalty in their customers which are being serving their
facilities and with the innovative products and areas (Jurišová, 2019).
 Threat of substitute products: as it is quite easy in todays time to get a substitute product
in the market as nowadays so many market are coming with same ideas and with a
different products in a low pricing which will thereby shows that the other companies
which already exist have a threat as in comparison to Deliveroo The threat of substitute is
high all the established companies use to give there own food and services and in case of
Deliveroo they do not provide any frozen meal or ready to cook services (Nayak, and et.
al., 2019). As another country imports to provide a cheaper substitute and with that the
psychological shifts in the cost of the areas of the product and loss which thereby affect
the superior areas and performance of the company. Deliveroo Implies to maintain the
switching and they are usually being highly threat full as in terms of substitution of the
product as with the expansion of various products and the areas this implicates out to be a
major threat in order to convince the customer to get a better experience in other places it
is merely easy and switching of the loyalty of customer used to take place in mere time as
every other person want to take a better facility in low amount so this thereby a High risk
factor. As the risk is high because Deliveroo does not provide any kind of convenience
regarding the ready to cook boxes or any frozen meal services which implicates out
customers to shift towards another area.
 Rivalry: There is a tough competition in the market as there are so many companies that
are being expanded in the food market and delivery sectors and they are trying to provide

better and faster delivery services with exciting offers that attract customers. But this
threat is merely low for Deliveroo as they used to provide as an fastest rate of industry
that has been growing rapidly with an optimum range of products. The used to provide a
clear market in the leadership facility as they used to treat the employees in a proper
manner through which they used to identify all the skills and the new changes that are
needed in the market areas with that they use highly differentiated products through
which the target areas and the customers can be covered in the sub-segments can be
established and all the economical and psychological switching maintains the consumers
at a high pricing and rates as through which it firm out the industry to maintain it from
the losses (Leischnig, and et. al., 2017). Although the company is strategically approach and
try to maintain the customer loyalty and with the Deliveroo or imparts to provide a proper
strategy concerns as they has an expansion spree Through which they tend to provide all
the facilities to their customers by the racing demand to try to adapt their changes
according to the needs of the wants of the customers. In order to maintain the competitive
advancement in the market deliver or should try to lead and strengthen their positions by
developing strong relationships with their customers and gain the loyalty of them.
 Bargaining power of suppliers: Deliveroo As is a well-known company have so many
suppliers for their resources in all the suppliers used to provide them the optimum
products according to their needs. As with the changing dimensions and demands and
with the high availability of resources in all means the supply power of bargaining is
moderate. As for food delivery companies they have so many options in order to manage
the resources and deliver or being a well-known company they can able to deal with all
the suppliers in a well known manner. There were strong base of suppliers with optimum
prices and facilites.It makes the product with a differentiation that lacks out in the
substitute areas with all the high price sensitive areas in the adequate margin (Timms,
2017). Deliveroo is independent and should try to maintain their own channels through
which they cover lower suppliers for maintaining the contractual relationships.
 Bargaining power of buyers: Deliveroo covers High Bargaining power of buyers As it
has been indicated that all the work in the food delivery is being dependent on the
customers and their requirements. In which they exert in the business organisation it is
being imported that all the affordable prices and the influences that has been made in the

expansion are being considered as the objective of the business. As there are so many
companies nowadays who provide food services with lower pricing that make customers
to shift towards them (Ahsan, and Mirza, 2020).
 Deliveroo works for the growth and the demands of the customers as their employees are
well-trained in order to know about the demands that are being raised in the market by
the customers so they try to adapt all the new changes and the methods with the services
that are being provided by them are totally dependent on the requirements that are being
faced by the customers. As the buyers have the major power deliver or can maintain to
track it in all the new segment of market and also to adapt the diversification India
various strategies and functions. Try to serve better products in a lower pricing so that
maximum customers can be approached and as they have a loyal customer background
over there it used to provide them a concentrated areas through which the bargaining
power against the company of customers are merely increased as there are various
numbers of sellers in the market and there is so much tough competition so customers can
tend to shift towards any other area so in order to maintain a low switching the cost of the
company‘s products tends to be decreased at the times. The used to maintain a
competitive pricing strategy through which the produce products are being made instead
of purchasing the services to try to give their customer is a proper good and fresh food
available in the market area there the pricing that is being made a sensitively high as the
standardise areas in the volume is that it’s been increases by the bargaining power of the
power are considerably frame (Remane, and et. al., 2017) Deliveroo Tries to invade their
product and try to launch various inventions in the product so as the market in the
promotional strategies can be implemented in the customers will be satisfied by the
products and the food that is being delivered by them.