Deliveroo: Ethical Factors & Decision Making in Global Market

This report examines the global business environment with a focus on Deliveroo, an e-commerce food delivery company operating in multiple countries. It explores key factors driving global commerce and trade, including cost, market environment, and competition, along with the strategic challenges faced by businesses in a global setting. The report evaluates the influence of globalization on business governance, leadership, structure, culture, and functions, utilizing the McKinsey 7S model. Furthermore, it assesses ethical and sustainable factors relevant to global markets and analyzes different approaches to effective decision-making in a global context. Finally, the report identifies various routes to internationalization for organizations and the associated barriers, providing a comprehensive overview of the complexities and opportunities in the global business environment.

Global Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P1 Explain the key factors of cost, market environment and competition which drive global
commerce and trade? ..................................................................................................................3
P2 Explain the complexity of strategic challenges faced by the business organisation when
operating in a global environment? ............................................................................................6
P3 Evaluating the influence of globalisation upon business governance, leadership, structure,
culture & functions......................................................................................................................6
P4 Evaluating the ethical & sustainable factors of organisation which are consider in global
market..........................................................................................................................................8
P5 Evaluate the different ways in which the decision making can work effectively in the
global context..............................................................................................................................9
P5 Determine the various routes of internationalisation of the organisation can adopt
including the key barriers. ........................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
A business is referred to the organisation which is engaged in any commercial, industrial
or professional activities. The main purpose of the business organisations is to create value for
the customers in return of earning profits. It is very important for the organisations to be aware of
the external factors which are very important for the organisation. The business environment is
the sum collection of the internal and external factors which can affect the operations and
activities of the business organisation. So it is very important for the marketers of the managers
to look for the factors which have a positive and negative impact on the business organisation.
The company which is considered in this report is the Deliveroo which is the e-commerce food
delivery company. It is situated in London, United Kingdom. It is operated in more than 200
locations throughout the UK, France, Ireland, Australia, Netherlands(Halbert, and Ingulli, ,
2020). This report will include various topics such as key factors of cost, market environment
and competition, complexity of the strategic challenges, influence of the globalisation on the
business, ethical and sustainable factors of the organisation, different ways in which decision
making can work effectively and at last the routes of internationalisation with key barriers.

TASK
P1 Explain the various key factors of cost, market environment and competition which drive
global commerce and trade?
The globalization of trade and commerce of an enterprise require to know and analyse the
nature, its costs of global operations of business, competition among the market players,
environmental factors influencing the provided services and products and many more. So, a firm
can increase its benefits from the international business operations.(Gaganis, Pasiouras, and
Voulgari, 2019). In context of Deliveroo, the various key factors are discussed below:
Cost- The cost facto is related to the total expenditure which carries from nation to nation
and also is essential for the accomplishment of the higher advantage of the business organisation
globally. This factors helps the organisation 9in facilitating the grater opportunities and
development of the business which eventually cause in the growth of the economies of scale. The
Deliveroo company can have an advantage of the higher profitability. The company can identify
the new custo0mers base in an easy way at the low cost.
Market- This is the key factor which is very important fro the organisation and the
marketers pay attention on the current market and what is been changing from the past years.
Basically it is a comparison of the market from the previous years. It provides the various
oportunituie4s for the organisation. In context of the Deliveroo the manager is responsible for
targeting the high market share in order to increase the revenue of the company. Hence, it makes
them be competent to serve the consumers at their best level and develops sustainable and
profitable outcomes even in global level(Steger, 2017).
Competition- As increase in the globalisation in the world, there are the4 chances of the
high competition in the market in order to operate businesses at the global level. At the global
level, the competition is immense among the businesses such as Uber Eats, ChowNow,
DoorDash and many more that apportion their business low-level the related sector because of
the globalisation. It forces the business organisations to enter in the international market and
encourage to hold out. In case of Deliveroo, the system already faces immense competition as
they are operating business at global level that is in more than 200 locations.
Environment- This is the key factor which is an important aspect for the organisation as
it is related to the environment forces which can impact the organisation where it is operated
globally. It is very important for the Deliveroo to manage all the external factors in order to

perform the various operational activities of the organisation. The managers need to acquire the
effective strategies and the policies which can impact the organisation in a positive manner(Lyu,
and Hwang, 2017)
PESTLE ANALYSIS
It is a tool which is used by the business organisations in order to evaluate the external
factors which can influence the activities of the business enterprise It is an important aspect
which needed to be evaluated by the marketers to know the various opportunities and the aspects
which can affect the business organisation. The various factors in context of Deliveroo are
discussed below:
 Political- This factor is related to the extent to which the government policies can
interfere in the business organisation. Such factors include trade restrictions, tax policy,
trade restrictions etc. As the United Kingdom the policies are stable and the Deliveroo
has a positive impact of the political factor. But the manager of the organisation need to
keep an eye on the government regulations for the smooth functioning of the business on
the international level as well as achieving the long term growth and survival.
 Economical- These factors directly impact the business organisation by its performance
in the economy. Such factors include interest rate, growth rate, inflation rate,
unemployment rate etc. In context of the Deliveroo it is very important for the manager to
know about the economic aspect in order o function internationally. The interest rate can
differentiator nation to nation which can impact the business(Kang, , Diao, and Zanini,
2020)
 Social- These factors assist the marketers to be aware about the current trend in the
market. It is very important for the business to know its customers and their choices
according to the social trend. Such factors include change in lifestyle, attitude, behaviour,
cultural aspects. In context of the Deliveroo it is very essential for the manager to pay
attention on the behaviour of the consumer and their attitude in the society in order to
meet the expectations of the consumers. As the organisation is offering the online
services to its customers it has advantage of trend which is observed because of the
pandemic the people are not willing to step out of their homes. Through this the company
can target the large audience.

 Technological- These factors are related to the innovation and developmen6t can impact
the business organisation. Such factors include research and development, artificial
intelligence etc. It is very important for the manager of the Deliveroo to pay higher
attention on the use of the latest technologies to attract customers. The use of the
digitalisation can lead to target the large market for the business organisation(Strandvik, ,
Holmlund, and Lähteenmäki, 2018)
 Legal- These factor are related to the certain laws which are application and differ from
country to country. Such factors include laws, labour law, industry regulation, licensing
etc. In context of the Deliveroo it is very important for the company to focus on the safety
laws for its employment. It involves the various practices which is required by the
business organisation such as cleanliness of the kitchens, maintain the standardized and
use the best quality of the products in order tot conduct the busie4ns organisation.
 Environment0- These factors are related to the rules and regulation which can impact
the environment. There are certain factors which can impact the business organisation
and the organisation activities can impact the environment. Such factors are climate
change, sustainability etc. it is very important for the Deliveroo company that it practices
the suitability. The products of the organisation should not be packed in the plastic poly
bags which can help in saving the environment(Hasan, ,and et.al., 2019)
P2 Explain the complexity of strategic challenges faced by the business organisation when
operating in a global environment?
Besides the outer factors of the global business environment, inner factors such as
corporate governance, cultural issues, leadership and functions of the international operations
also affect the business environment. In context of the Delive5roo the various challenges are
discussed below:
 Organisational governance- Preceding governance of the business organisation may not
be appropriate when the firm likes to expand its market share. It is very essential for the
company to take new policies of the governing in the operative and strategic
management. For instances, the managers of the company need to develop new policies

to communicate with its stakeholders. In context of Deliveroo, the company must conduct
its business activities under the new organisational governance.
 Leadership- It is assumed that the employees and management are to be more controlled
and disciplined for the compatibility of the food sector where the partners and customers
are more polished than local clients. The managers need to know about the existing
market environment and legal policies of the operating business and local ones.(Golicic, ,
Flint, . and Signori, 2017).
 Culture- The culture is related to the values, beliefs and the principles which are very
essential for the managers and employees to adopt in the organisation. The culture of the
organisation defines the image of the organisation.. In context of the Deliveroo the
company does not compromises in the quality of the food product which has to be
delivered to its customers.
P3 Measure the influence of globalisation upon business governance, leadership, structure,
culture & functions
The influence of the globalisation over the business governance, leadership, structure ,
culture and functions is discussed with the help of a model known as McKinsey model. It is a
tool which is used by the various business organisations which assess the well being and the
future of the business enterprise. This model comprises of the 7 internal factors of the business
organisation which defines that the company has a structural support for the success of the
business organisation. Here this model is been explained in context of Deliveroo.
 Structure- This is related to that how the organisation is organised and have a flow of
command ion order to perform the various activities within the organisation. In context of
the Deliveroo it is very essential for the organisation that it concentrates of the structure
of the organisation so that each and every employees and the management can understand
their roles and responsibilities in a efficient manner. It is suggested that the organisation
can have a proper structure which is divisional structure so that they can maintain the
work from the different department effectively and efficiently(Panda, and Rath, 2018)(
 Strategy- This is referred to as a plan which is deployed by the organisation in order to
remain competitory in its business and the market. An idea approach is to establish the
long term strategy which aligns with the other elements of the model. In context of the

Deliveroo it is expected that the manager focus on the objective of of attaining the
sustainable competitive advantage which will assist in developing a strong strategy. This
can be helpful for the organisation if the manager concentrates on keeping a healthy
culture and environment which will motivate employees in working effectively and
efficiently.
 System- This is refereed to as the daily procedures workflow and the decisions that
make-up the standard operation within the business organisation. In context of the
Deliveroo the company focuses on adopting the high technology so that the operation can
be conducted smoothly. This helps in saving time and use of the advance technology
makes the employees work efficiently. Also the organisation choose the best decision so
that it is beneficial and help in the sustainable development and growth of he
organisation(Volkodavova, , and et.al., 2019).
 Skills- This is known as the capabilities an the talent of the management and the
employees within the organisation. This is the effective one if the company allows their
workforce to enhance their skills in the job role which can be effective in achieving the
goals of the organisation. In context of Deliveroo the manager allows their employees to
take decisions at times so that they can show their knowledge and talent in the work
which is an effective for the organisation. This helps the organisation in achieving its
objectives as the workforce is skilled and the organisation focus on giving the training to
the employees whi9ch can improve their productivity(Markovic, and et.al., 2020)
 Staff- This is referred to as the personnel of the business organisation. It is that how large
is the workforce of the company. As well as how they are trained and prepared to
accomplish the goals of the organisation. IN context of the Deliveroo the human
resource department focus on the development of the employees and also focus on the
compensation paid to them so that they are motivated in their job roles. This enhances in
the development of the staff and also increase in the productivity of the organisation.
 Style- This is related to the example and the approach which is considered by the
management in the leading the business organisation as well as how the management
influences in the culture of the organisation. In context of Deliveroo the manager focus
on the democratic leadership style so that the employees motivated Also this style helps
in long term sustainable for the organisation.

 Shared values- These are the accepted standards, norms , values and beliefs of the
business organisation which influences the behaviour of the employees. In context of the
Deliveroo it is very important for the organisation to make its mission and vision clear to
the employees sop that they can focus on achieving the objectives of the organisation.
Also there are certain norm which should be followed by the organisation in swerving the
best quality to its customers.(Battistella, and et.al., 2017).
P4 Evaluating the ethical & sustainable factors of organisation which are consider in global
market
The ethical factors within the globalisation defines to the process in which the
information data, products or services, technology and several things are traded with morality as
well as in ethical form. The term ethics defines to an understanding of what is right and what is
wring in company. This represent a wider area which includes different stakeholders like
community, government, staff members, suppliers, buyers etc. The main purpose of ethical
factor is to enhance company's employees so that they can work in ethical way towards the
accomplishment of objectives or goals. Working with considering different ethical factors
assists the business organisations in having smooth flow of business as well as achievement of
long term sustainability especially at global level(Majid, Yasir, Yasir, and Javed, 2020)
The sustainable factors of the globalisation demotes the various factors which drives the
business organisation to have their presence internationally and obtain high competitive
advantage at the global level. This enhances on the profitability of the organisation and they can
survive in the international market. Also , the sustainable factors provide the growth
opportunities for the organisation in respect to the international market. The various factors
which contributes in the sustainability of the Deliveroo company includes economies of scale,
human resource as well as marketing of product and services. This motivates the employees to
work effectively. When the highly talented employees are dedicated towards adopting the new
marketing strategies and in the innovation this will attract customers to show their interest in the
organization.

P5 Evaluate the different ways in which the decision making can work effectively in the global
context
The decision making process in any organisation is the most important aspect to be
undertaken. As it affects the organisation and its operations. This is the most essential part that
the managers should able to make a correct decision in order to achieve the goals and objectives
of the organisation. There are several ways in which decision making can work effectively which
are discussed below:
 Command decision making- This is the way in which the managers or the leaders take
a decisive decision without the input of the others. This is the most quickest one because
there is no involvement of the other people. This is an effective decision making which
can impact the organisation and the managers can take it. This can help the Deliveroo
company in taking the decision which is related to internationally marketing of the
product or services(Rendtorff, 2017)
 Collaborative decision making- this is the another way of decision making where the
manager can consult to its subordinates so that it can work effectively. Some times the
collective ideas can make a good decision. A the global level this is the most crucial way
in which the organisation can achieve its objectives and goals by a collaborative decision
making within the organisation.
 Vote decision making- this is a wa of decision making which allows the input of the
other people without investing in a significant amount of time in the dicsussion or debate.
This is a way where the employees can give their vote to the selected choice been made
by the managers. This is helpful in the large organisation where there is a lot of work and
the company is expanded globally.
P5 Determine the various routes of internationalisation of the organisation can adopt including
the key barriers.
There are various aspects which are important for the organisation before expanding its
business internationally. There are various routes of the internationalisation of the business
organisation can adopt which are discussed below:
 International strategy- This is a route which can be adopted by the organisation to
create value internationally by offering their products or services in the foreign countries.

This can be done by taking the high control over the operations and providing the
standardized products with no differentiation.
 Global strategy- This is the another way where the organisation are rely on the low cost
structure and offer the product or services to the selected foreign market in which the
company have the expertise. This is the way in which the product is distributed world
wide.
 Multi domestic strategy- In this type of the route the organisation can provide the
customized products which match the local conditions operating in the foreign market.
Here the marketers need to do a good research and development of the product or
se4rvies to market its product internationally.
 Transnational strategy- This is the way of internationalisation for the business
organisation where the firm adopts the combined approach of multi- domestic and global
strategy. Here the organisation can rely on both low cost structure and local
responsiveness according to the local conditions.
There are various barriers for the business expanding globally:
 the one of the most crucial barrier can be the cultural differences. This is the challenge
which the organisation may have to face because there is the difference of the culture
which varies from the country to country.
 The government policies also can be the barterer for the internationalisation of the
business organisation. Iit is very essential for the Deliveroo to consider the policies of the
nation in which it has decided to expand its business. The international trade policies may
be different.(Rossignoli, . and Lionzo, , 2018).
CONCLUSION
From the above report it is concluded that the business organisation is a separate entity
where it conducts the commercial, industrial or professional activities in order to create value
and serve to the customers. It is very important that the organisation may undertake the external
factors which can influence the operations of the business organisation he business environment
is the related to the external environment which can impact the enterprise. The pestle analysis in
context of Deliveroo suggests that it is very important for the organisation to take care of the
external factors such as legal in which certain laws should be followed in order to avoid any

legal actions which might be taken by the government. The strategic challenges which the
company has to face because of the globalisation. It is very important that the organisation makes
an effective decision making in order to achieve the goals of the organisation.