Analyzing Deliveroo: Navigating the Global Business Environment

This report provides a detailed analysis of Deliveroo's global business environment, examining key factors such as cost, market dynamics, environmental considerations, and competition that drive global trade and commerce. It discusses the strategic challenges Deliveroo faces when operating internationally, including political, economic, social, technological, legal, and environmental complexities, as well as communication difficulties. The report also explores the influence of globalization on Deliveroo's leadership, organizational governance, culture, and functions, utilizing McKinsey's 7-S model to evaluate the company's internal environment. Furthermore, it evaluates the impact of ethical and sustainable globalization on organizational functions and discusses various decision-making approaches suitable for a global context, along with different routes to internationalization and associated barriers. This analysis offers valuable insights into how Deliveroo navigates the complexities of the global market.

Global Business
Enviroment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Key factors of cost, market, environment and competition that drive global trade and
commerce.....................................................................................................................................3
TASK2.............................................................................................................................................4
P2) Discuss the complexity of strategic challenges faced by the entities when operating in
global environment......................................................................................................................4
P3) Discuss influence of globalization on leadership, organizational governance, culture and
functions......................................................................................................................................6
P4) Evaluate how ethical and sustainable globalization influence organizational functions......8
TASK 4............................................................................................................................................9
P5) Different ways of decision making that can work in global environment............................9
P6) Discuss routes to internationalization that an organization may adopt and also discuss
barriers.......................................................................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

INTRODUCTION
Global business environment consist different companies which exchange goods or services
with each-other in order to ensure future growth and success. In current time, each and every
company is likely to operate business in international environment. It is imperative in order to
flourish in competitive market place. However, the working conditions in different countries are
not same hence the companies have to face uncertainties that might affect the business operations
profoundly (Kasemsap, 2018). The present study aims to understand the dynamics of global
business environment. In current scenario, Deliveroo is taken into consideration which is a
multinational company. it is operating in food and beverage industry in London. The company
was started in 2013 and has been expanded business in 12 countries so far. The report will cover
factors of cost, environment, competition and market that drive trade & commerce. Additionally,
strategic challenges faced by the company and the influence of globalization on organizational
governance, leadership, structure and functions will also discuss in the study. Further, it will
cover how ethical and sustainable globalization on organizational function. It will include
different ways of decision making in global context along with various routes to
internationalization an organization can adopt.
TASK 1
P1) Key factors of cost, market, environment and competition that drive global trade and
commerce
Globalization is process wherein the companies, people, product interact with each-other.
It enhances the business opportunities by minimizing the restriction on trade and exchanges
between different countries. In current time, globalization is quiet common in various industries.
In addition, there are several factors which drivers have direct influence on globalization. In
context of Deliveroo, these elements are mentioned below:
Cost: When a company expands business in international market, the demand of the
products is also increased. To meet with the increasing level of demand, organization needs to
produce the products in bulk which minimizes the overall cost of production efficiently (Virakul
and Russ-Eft, 2019). In context of Deliveroo, globalization will help the entity in upgrading
their digital technology. It will also help them in minimizing the overall production cost that will

inflate the existing sales and profit margin significantly. Hence, reduction in cost is one of the
major factors that drive globalization in profound manner.
Market: Each and every company aims to expand the business to enhance the market
share. For this purpose, they enlarge the business in order to target global audience. It enhances
the revenue and profitability of the organization efficiently. This is one of major factor that drive
globalization. In Deliveroo, they are already working in international market. For expansion,
they are looking forward to expand business in more countries. It will enlarge the market share
of the business entity and help in establishing a unique identity in the market place.
Environment: Globalization has major impact on the environment. While a company takes
decision to expand the business, they also evaluate the environmental conditions of the country.
If the environment is favorable, it will be better for to expand the business. Environmental
conditions include availability of resources and more (Crane and et. al., 2019). In context of
Deliveroo, they evaluate the environmental conditions of the nation so that they can expand
business easily. Environmental analysis helps the business entity to measure the appropriateness
of the country for the business expansion.
Competition: To remain in the competitive market for longer duration, it is imperative to
enlarge market share. In current time, entities are likely to expand business so that they can stay
in competitive market place for longer period of time. Additionally, competition is one of the
major reasons of increasing internationalization. Here, international presence makes an entity
enable to create differentiation in competitive market. In reference of Deliveroo, they are
expanding business not only for enlarging the market share but also to survive in competition for
longer duration.
TASK2
P2) Discuss the complexity of strategic challenges faced by the entities when operating in global
environment
When a company enters into global environment, they have to face several difficulties
that might affect the operations of the company significantly. It is not easy to operate in global
environment. Here, changes in the political, economical environment of the nation will affect the
functions of the business entity. Deliveroo is working in international market. They are affected

by the changing environment of different nations. It will create new challenges for the business
entity and further enhance the level of complexity.
PEST Analysis
Political Challenges: These challenges are associated with changing political conditions
of a country. It is monitored that political conditions of each country is not same and likely to
change over the period of time (Kamalluarifin and et. al., 2018). In Deliveroo, they need to
modify their strategies as per the change in the political conditions of the countries they are
operating. In addition to this, they need to cope up with modifications in government rules and
regulations to ensure long term sustainability.
Economical Challenges: It is quiet difficult to predict the economical elements. Sometimes,
economic environment proves highly uncertain. Additionally, economical conditions of all
countries are not same. Some countries are developed and have tremendous amount of resources
whereas there are some nation which are still not developed fully (Virakul and Russ-Eft, 2019).
In this situation, Deliveroo needs to modify its strategies so that they can adjust in different
economies. Here, they are required to forecast regarding the future condition of economy so that
they can prepare suitable strategies accordingly.
Social Challenges: Strategic challenges emerge due to the socio-cultural issues such as
change in lifestyle, trends, demographics, religion, beliefs etc. Changes in the customer
preferences, buying pattern, preferences and more cannot be predict. These changes can easily
affect the functions of a business entity (Nikitina and Lapiņa, 2019). In case of Deliveroo, they
are required to predict the changes in consumer behavior, preferences in order to operate the
entity significantly in global environment. Detailed analysis of consumer behavior will help in
providing better and effective products to the customers.
Technological challenges: Countries adopt technical changes so that the business can be
advanced and upgraded. However, technical challenges affect the business functions
significantly (Durst, Bruns and Henschel, 2018). For instance, New Zealand is the country that is
ahead in technological development and enhancement. On other side, there are some countries
such as Nigeria, Indonesia and more are lacking in technology development. Deliveroo have to

face technical challenges while working in global market. They need to modify the current
technological aspects of the business entity while working in different nations.
Legal Challenges: In different countries, different rules and regulations are followed. In
addition, the government also makes amendments in the recent laws (Mir and Shah, 2018). In
reference of Deliveroo, they are working in different countries hence it is quiet difficult for the
business entity to cope up with the modifications of policies and rules of different nations.
Environmental Challenges: Nowadays, it is crucial for each and every entity to follow
sustainable practices. For this purpose, different nations have their own norms of sustainability.
It is quiet difficult for Deliveroo to meet with the environmental and sustainable policies of each
and every nations, they are operating.
Communication difficulties: Communication is the key of success of every business.
However, it can be challenging while communicating across different cultures. In international
environment, it is challenging for the company to maintain properly communicate with internal
and external stakeholders (Daidj, 2019). In Deliveroo, they are operating in 12 countries hence
they are likely to face communication issues in terms of cultural and value differences while
communicating with internal and external stakeholders.
P3) Discuss influence of globalization on leadership, organizational governance, culture and
functions
Globalization has major impact on the internal working of an organization. When a
company expands business globally, it affects the culture, governance, function, leadership
requirement and more. In context of Deliveroo, the impact of globalization on all these elements
is mentioned below:
Leadership: Globalization has been increases diversity at workplace. It has enhanced
interaction between different cultures and need to hire potential candidates for organizational
success in global environment. Hence, there is requirement to hire potential leaders who can
handle the diversify workforce efficiently (Schandl and et. al., 2018). In addition, leaders need
to communicate openly with the employees in order to know the issues they are facing to work in
the global environment. In context of Deliveroo, leaders need to modify their working

approaches so that they can easily cooperate with the employees. In addition, they are required to
hire efficient candidates to work in global environment.
Organizational governance: Increasing global competition increases the need of
transparency and accountability. In globalization, firms expand business in more countries which
further enhances the need of transparency in business. In addition, it enhances the need of rules
and regulations so that the business can be operated significantly (Biloslavo, Bagnoli and Edgar,
2018). In case of Deliveroo, they need to maintain corporate governance by structuring
appropriate rules and regulations in order to ensure future sustainability. It will help the business
entity in maintain positive positioning of the company in international business environment.
Culture: Organization culture is made with the values, behavior of the individuals who
are working with them. Culture is not likely to stay similar for longer run. Rather, it is changes
with changing perspective, values, and principals of the people. Globalization has a major impact
of the culture. It enhances the diversity and increases the interaction between the people of
different culture and norms. In addition, globalization also enhances the exchange of thoughts,
opinions that further contribute in exchange of culture (Gogokhia and Berulava, 2021). In
context of Deliveroo, they are working in global environment wherein culture of different
countries has profound impact on functioning of the business entity.
Function: In business, there are ample of functions performed. Here, the major business
functions are marketing, finance, production, human resource management, operations and more.
Globalization has been increased the scope of digital technology in business. now, each and
every business entity is likely to use efficient, updated and advance technology for future
betterment. In Deliveroo, the company is operating at large level. They perform different
operations like marketing, finance, operations, supply chain and more in the countries they are
working. Here, the changes in the external environment also caused changes in the functions that
are being performed by the business entity.
Mckinsey 7’ s model
This model is applied in order to evaluate the internal environment of the business entity.
In this context, different elements of the respective model are mentioned below:

 System: In context of Deliveroo, they have a clear and well-defined process which
allows company to undertake different function in a systematic& proper way.
 Structure: The respective company has been designed its structure in an appropriate way
that will help in attainment of organizational goals successfully (Hamilton and Webster,
2018).
 Skills: In Deliveroo, all employees are skilled, well-qualified and competent. Efficient
workforce will assist the company in attainment of organizational goals in a profound
manner.
 Shared Value: In context of selected company, they follow some pre-defined set of
standards and values to conduct the business in an appropriate way.
 Style: Leadership style followed in Deliveroo is highly effective hence the leaders are
able to motivate, guide, leas employees for accomplishment of organizational objectives
(Nikitina and Lapiņa, 2019) .
 Staff: Success of the company is influenced by the workforce. In context of Deliveroo,
they have competent and proficient group of workers that will help in success of the
business entity (Gogokhia and Berulava, 2021).
 Strategy: It refers to the plan that is prepared to attain future goals(Edelson, Senk and
Stock, 2018). In reference of Deliveroo, they structure suitable strategies for the
betterment of the company.
P4) Evaluate how ethical and sustainable globalization influence organizational functions
Ethics is a crucial component of business that contributes towards future sustainability.
Ethics are the set of rules that govern suitable approaches and practices in business. It helps in
maintain high reputation of business entity in market. In Deliveroo, influence of ethical and
sustainable globalization on organization function is explained below:
Human resource Function: As a result of globalization, several issues are emerged in
the field of human resource management. Globalization has been increased the culture difference
that is enhancing the complexity in business. In global environment, HR managers are facing
issues related to hiring potential and efficient employees (Chhaparia and Jha, 2018). In deliveroo,
ethical practices are followed in terms of treating all the employees equally and fairly. It will
help in minimizing discrimination, harassment and issues of child labor in global environment.

Finance department Function: Finance is one of the important divisions of the
business. Sustainable and ethical globalization put a direct impact on financial function of the
company. For ensuring financial sustainability for a business, it is imperative to follow ethical
practices such as fair trading practices and more. In context of Deliveroo, they conduct internal
and external audits in timely manner in order to run the business efficiently. In addition, they
also treat the stakeholder appropriately and provide them adequate share in profits to maintain
ethical and sustainable business.
Sales and Marketing Function: Sales and marketing activities are related to offer
suitable products or services to the customers in order to fulfill the needs efficiently. Sometimes,
ethical issues emerge due to inappropriate advertisements and promotional activities. In addition,
the marketers also make false promises with the customers via advertisement and promotion. To
ensure long term sustainability of business, it is imperative to follow ethical practices. In context
of Deliveroo, they follow appropriate marketing and promotional strategies in order to attract
more number of buyers. Following proper ethical marketing will help the sales and marketing
team of the company to flourish in global environment.
Production Function: Production is related to transform the raw material into finish
goods. During the production process, ample of equipments and tools are used which further
cause environmental issues. It is imperative to follow ethical practices in production in order to
minimize the level of environmental pollution in an efficient manner. In context of Deliveroo,
they follow sustainable practices for producing the end products. It is imperative in order to
maintain continuity in the business for the future growth and enlargement.
TASK 4
P5) Different ways of decision making that can work in global environment
Global environment is large and consist of several elements which affect the decision
making process. Decision making is one of the essential functions of each and every business. In
reference of Deliveroo, various elements affect the decision making process are mentioned
below:

Strategic Decision making: It is an important way of decision making that is often used
in global environment as it comprises appropriate planning so that suitable decisions can be
taken for enlargement of the business entity.
Innovative decision making: In current environment, innovation is highly important to
sustain for longer period of time (Morozova, Popkova and Litvinova, 2019). In context of the
respective organization, they incorporate innovative and creative elements while taking business
decisions. Through this, they can easily develop creative and unique solution which will prove
beneficial for the company in future period of time.
Participative decision making: In organization, ample of people work together for
accomplishment of a common goal. Due to globalization, diversity among the workforce is also
increasing rapidly. In this situation, each and every employee has different mindset and opinion
on a particular concept. Hence, it is imperative to allow all the employees to take part in the
decision making process (Belyaeva, 2018).. In context of Deliveroo, thy encourage workforce to
take part in decision making process in order to make it effective and efficient. Thus way of
taking decisions will help the company to incorporate local knowledge and aspects in the overall
decision making process.
Differentiators: Under this decision making process, every unique factor of business is
taken into consideration to ensure competitive advantage in future period of time. In Deliveroo,
they can use certain unique factors such as product price, quality and more so that the effective
decisions can be taken.
Economic logic: To operate business and global environment for longer period of time, it
is imperative to consider economical aspects during decision making process. Here, decisions of
company are based on the rational of cost and profitability. In reference of Deliveroo, they can
adopt this way of decision making to enhance the overall level of revenue and profit margin.
P6) Discuss routes to internationalization that an organization may adopt and also discuss
barriers
Due to increasing competition, organizations are expanding business at global level.
There are ample of ways that can be used by an entity for international expansion. In context of
delivery, certain routes of internationalization are explained below:

Licensing: Under this, organization grants permission to another entity to use their
intangible property such as trademark, copyright, patent and more (Mittal, Sondhi and Chawla,
2018). In context of Deliveroo, they can use this approach to enhance the global present of the
brand that will help in generating potential revenue for the entity.
Joint venture: It is also one of the crucial ways that is used by most of the companies to
enter into a global market. Here, two companies combined their business together to attain a
common goal. In reference of Deliveroo, they can create a joint venture with a local company. It
will beneficial in terms of knowledge of local aspects that will help in sustaining in the global
environment for longer duration.
Barriers of internationalization
Financial barriers: When a company expands the business at international level, there
is requirement of huge initial investment. In this situation, limited amount of financial resources
will create a problem for the business entity (Benz and Jaax, 2021). It is not easy for a company
to arrange huge amount of funds. In this context, Deliveroo also have to face certain financial
issues while they will expand the business.
Managerial barriers: Global business environment is dynamic and consist of several
challenges that further put a great influence on success and growth of an entity. To operate in a
global environment, manager also needs to have knowledge regarding the trends which are
prevailing in the international market (Cohen, Ferguson and Oppenheimer, 2019). In contest of
Deliveroo, they have to face managerial barriers due to change in working conditions of the
business entity.

Conclusion
Through the above discussion, it is concluded that global business environment is
important for success and growth of each and every business. It is analyzed that cost, market,
environment and competition are some major factors which drive globalization. Additionally, it
is summarized that globalization affect leadership, governance, functions of the business entity.
There is discussion regarding the influence of ethical and sustainable tourism on functions of the
organization. Further, it is concluded that there are ample of routes can be used by the company
to enter into international market. It is concluded that there are several barriers faced by the
organization while entering into international market.