Analyzing Deliveroo's Global Expansion: Challenges and Opportunities

This report examines Deliveroo's engagement in the global business environment, focusing on the key factors that drive global trade and commerce such as cost, market dynamics, environmental considerations, and competition. It delves into the strategic challenges Deliveroo faces, including political, economic, social, technological, legal, and environmental factors, analyzed through a PESTLE framework. The influence of globalization on leadership, organizational governance, culture, and various business functions within Deliveroo is also explored, highlighting the need for adaptability and transparency. Furthermore, the report discusses different decision-making approaches suitable for a global environment and various routes to internationalization that Deliveroo can adopt, while also acknowledging potential barriers. The analysis leverages models like McKinsey 7’S to assess the internal environment, providing a comprehensive overview of Deliveroo's strategic positioning and operational considerations in the international marketplace. Desklib offers a variety of solved assignments and study materials for students.

Global Business Environment

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
P1) Key factors of cost, market, environment, competition which drive global trade and
commerce ....................................................................................................................................3
TASK 2............................................................................................................................................5
P2) Complexity of strategic challenges faced by the company while working in global
environment .................................................................................................................................5
P3) Analyze the influence of globalization on leadership, organizational governance, culture
and functions................................................................................................................................7
P5) Different ways of decision-making to work in global environment......................................9
P6) Routes to internationalize that can be adopted by a business entity and also discuss the
potential barriers.........................................................................................................................10
Conclusion ....................................................................................................................................12
References .....................................................................................................................................13

Introduction
Global business environment refers to the transactions of goods or services between
companies working in the international environment. It is the environment which is present
within different nations. In global environment, several companies work together and exchange
the products in order to serve the global audience. International business environment helps in
development of new technology, infrastructure, managerial skills, creating jobs and more (Miri-
Lavassani, 2017). In the present study Deliveroo is taken into consideration, a multinational
company based on London, UK. The organization was founded in the year of 2013 and offers
variety of food products in the country. Currently, it has been expanded business operations in 12
countries. In report, factors of cost, environment, market, competition have been included in the
assignment. Further, It has been covered the complexity of strategic challenges, influence of
globalization on organizational governance. Further, influence of ethical and sustainable
globalization on organizational functions, different ways of decision-making, different routes of
internationalization have also been included in the following assignment.
TASK 1
P1) Key factors of cost, market, environment, competition which drive global trade and
commerce
The globalization has simplified the transaction between international companies. Now, it
is easy for the global audience to exchange products, service, equipment and tools with each
other. It is enhancing the business opportunities that will help in growth & enhancement of the
nation in an efficient manner. Globalization has brought several opportunities like use of new
technologies, advancements and more. In this context, the impact of different factors on the
operations of Deliveroo is mentioned below:
Cost: Cost is one of the important elements of trade as it directly affects the level of
profitability. To enhance the profit margin, it is important to control over the cost. If a company
expands business in international market, the demand of their products is also increased. As a
result, they have to produce products in large quantity which minimizes the cost of production in
an efficient manner (Kopnina and Blewitt, 2018). In reference of Deliveroo, they are able to offer

the products at minimum cost due to the use of efficient and effective technologies. It will help
the company in expanding business in developing region where people are willing to buy
affordable products. Therefore, it will enhance the global trade for the organization efficiently.
Market: It is the place where the buyers and sellers interact with each other. The main aim
of every organization is to target large market so that the business can grow. International
expansion is one of the most effective ways to attain the goal of market expansion. By expanding
market, a company can easily earn substantial amount of revenue. In Deliveroo, they are working
at international level in different countries. However expanding business in more countries will
help the company in enhancing the market presence. With this, it is possible to earn higher
amount of profit and revenue efficiently.
Environment: In global trade, environment plays a vital role. Here, the environment
comprises the available resources, equipments and more to utilize in the business operations.
While expanding business internationally, a company is likely to analyze the environment of
particular country (McWilliam and et. al., 2020). Favorable environment conditions make it easy
to expand. In context of Deliveroo, they are working within 12 countries in current time and
looking forward to expand in more countries. For this purpose, they need to evaluate the
environmental conditions of the country before expansion. It will allow them to understand
whether the business environment of the respective country is favorable or not.
Competition: Competition is an important part of every industry. It is because, ample of
companies work in a particular industry to attain their pre-defined goals. In global environment,
there is huge competition due to the presence of several companies. To sustain in such
competitive market, it is required to prepare significant strategies that will help the company to
grow and enrich. Unique features and attributes are helpful to ensure long-term sustainability in
market. In reference of Deliveroo, they are working in international market which is highly
competitive. To ensure success in such market, it is crucial to maintain uniqueness in the
products or services. This will make the entity enable to set them apart while working in the
international environment.

TASK 2
P2) Complexity of strategic challenges faced by the company while working in global
environment
Working in the global environment is complex as the company has to follow various rules
and regulations, norms of different countries. It creates an uncertain environment and affects the
future growth of the organization. In addition to this, international business environment is likely
to change easily. Here, change in the political, economical conditions of the country might create
threat for the future business operations of the company. In case of Deliveroo, they are working
in the international environment hence they have to face different challenges that will affect their
operations profoundly.
PESTLE Analysis:
Political challenges: The political environment is concern with rules, regulations,
government policies of a country. In this context, Deliveroo is working in 13 countries globally.
The political conditions of every country are not same. For instance, Hong Kong has low score in
terms of political stability and security whereas UK is a political stable country. In this situation,
it is quite complex for the company to modify their policies as per the changing environment of
nations, they are operating in.
Economical Factors: These factors comprise interest rate, exchange rate, demand,
supply and more such elements which might have a direct impact on the operations of a
company. Brexit has been created several issues for the company as they are facing shortage of
workers (Alshare and Sewailem, 2018). In addition to this, they are facing difficulties in terms of
exchanging products with European countries due to the restrictions imposed by Brexit.
Social Factors: Every person has different attitude, perception and mind-set regarding a
particular aspect. In context of Deliveroo, they will face the issue in terms of change in the
market trends in terms of healthy food practices. Now, people are likely to demand healthy
products hence the company is required to change their practices to fulfill the need of customers
in an efficient manner.

Technological Factors: Currently, technology is enhancing rapidly. Several advance and
updated softwares are present in the market to assist in the business operations (Carbery and
Cross, 2018). The countries where Deliveroo is working are highly advanced in terms of
technology. For instance, majority of people of UK are using online platform to place the order.
Additionally, Australia is also a technically advanced country. Therefore, the organization is
required to upgrade their system in order to cope up with the market standards.
Legal Factors: To operate the business significantly, it is imperative to follow various rules
and regulations. Delieveroo is facing issues of employment lawsuit in London. Additionally, it is
also difficult for the company to modify their existing policies, rules and regulations to best fit in
the legal framework of international environment.
Environmental Factors: Currently, following the eco-friendly practices is imperative for
every company so that they can maintain a positive influence on the customers. In context of
Delieveroo, they need to obey the environmental regulations of different countries in order to
create a positive brand image. In this light, they have been taken the initiative in terms of
embarking environmental friendly practices in an efficient manner.
Other Challenges:
In global business environment, the companies have to face ample of other challenges
which directly affect their functioning. These challenges are mentioned below:
Organizational communication: Different culture is followed in different countries
hence it is quite difficult to maintain proper communication among the team members. Here,
different in the opinion, view points, perception of individuals might create issues in terms of
maintaining proper communication among internal and external stakeholders of the organization
(Nudurupati, Garengo and Bititci, 2021). In context of Deliveroo, they are working in different
countries international
Traffic and Exports: While working in the international environment, issues related to
traffic and exports also faced by the company. Tax rates are different in the countries which
might affect the business operations of an entity profoundly. In context of Deliveroo, they need

to follow various traffic and export related norms in order to ensure the survival in at
international level.
TASK 3
P3) Analyze the influence of globalization on leadership, organizational governance, culture and
functions
Internal working environment of an organization is highly influenced by the
globalization. If a company determines to expand globally, it influences culture, governance,
function, leadership requirement and so on. In Deliveroo, the impact of these elements is
mentioned below:
Leadership: Diversity has been increased due to the globalization. As a result,
interaction between individuals of different cultures has been increased. It is quite difficult to
maintain proper interaction between the people of diversify culture. For this purpose, it is
imperative to provide appropriate leadership and guidance to the employees so that they can
survive in the changing environment. For this purpose, leaders need to maintain open
communication with the team members so that they can share their thoughts, opinions with other
people ((Farhoomand and et. al., 2021). In context of Deliveroo, it is required to maintain proper
leadership setting at the workplace. In this context, leaders need to modify their existing
approaches so that they can provide proper guidance to the existing employees in an efficient
manner.
Organizational governance: Now, the need of transparency and accountability has been
increased in the global environment. During globalization business operations are enhanced
which also increase the need of transparency in the operations. Further, there is requirement of
transparency to maintain effective relationship between internal and external stakeholders of
business. In case of Deliveroo, they are required to maintain governance by formulating proper
rules and regulations to maintain sustainability of business in future period of time.
Culture: Organization culture is the set of behavior, values of the individual within the
company. Culture is something which is likely to change with changing mindset and perception
of the individuals. Due to the globalization, the cultural interaction between different individuals

have been enhanced which is facilitating diversity at workplace. Additionally, it also increases
exchange of thoughts opinion and view points among different individuals that is crucial to
maintain a collaborative environment within the organization (Tamta and Rao, 2017). In
reference of Deliveroo, they maintain diversify culture wherein people having different mindset,
opinions, thoughts work together. Here, the cultural diversity will help the company in
minimizing the conflicts at work place in an efficient manner.
Function: In organization, there are several functions are performed to operate business
smoothly. The major business functions are marketing, finance, operations, production,
advertisement and more. To maintain successful business, it is imperative to maintain
consistency in business. In addition to this, globalization has enhanced the use of digital
techniques, therefore, every business entity is likely to implement advanced techniques to run the
business in an efficient manner (Liébana-Cabanillas, Muñoz-Leiva and Sánchez-Fernández,
2018). In context of Deliveroo, they maintain different business functions such as marketing,
finance, operations and more to ensure future growth and success of the entity.
Mckinsey 7’S model
Internet environment can be evaluated by implementing McKinsey model. In this regard,
various elements of the model outlined below:
 System: In Deliveroo, there is a proper and effective system which makes the company
enable to maintain the business operations in a systematic manner.
 Structure: The respective organization is likely to follow a proper structure to maintain
proper flow of information across different departments of the organization.
 Skills: All the employees of the respective company are well qualified and
knowledgeable. They have the ability to take part in the decision making process of the
organization to ensure future success.
 Shared value: In Deliveroo, there are some set of standards and values which are
followed by each and every employees and managers to maintain effectiveness in
business.

 Style: In Deliveroo, style of leadership is effective which helps to maintain a proper
interaction between the employees and the leader to accomplish the organization goals
and objectives.
 Staff: Employees are the important part of a company as they have the ability to
influence the success of all the organization through their capabilities and skills. In
reference of deliveroo, they have efficient and knowledgeable workforce that will help in
taking meaningful business decisions for the future success.
 Strategy: These are the plans for the success of company in future period of time. In case
of deliveroo, they prepare effective strategies so that the company can get success
efficiently.
P4) Evaluate the influences of ethical and sustainable globalization on organisational functions.
Ethics is a fundamental element within the organization.
This is a set of rules controlled to regulate an organization and certain approaches. Before
making certain decisions, a company has to consider the ethics encompassing the decision as it
impacts the reputation of the organisation. Whereas sustainable globalization represents a
breakthrough and a fundamental transformation in how people approach doing business in a
global world. It is principle-centered, opening on foundation values of services and
collaboration. To evaluate the influence of ethical and sustainable globalization on organizational
functions, here's functions of organization are discussed below:
Human resource management: The roles and responsibilities of human resource department
are transferring as the modern business faces pressures of globalisation. The global supply of
talent is short of its long term demand and the gap is challenge for the employers everywhere. As
the HR function is concerned with recruitment, selection, training and development, employee
relations, health and safety matters etc. so an organisation is dependent on their employees.
Consequently, their recruitment and selection require careful management because ethic of
globalization imposes the importance of avoiding discrimination, sexual harassment and child
labour.
Finance department: It is a key component of any business concern where ethics and
sustainable globalization has a direct impact on the financial function of an organisation. There

should be good ethical practices such as fair trading accounts, mutual agreement to any contracts
or sale agreement, paid taxes and no objection for internal or external audit. Also there should
not be any misleading financial analysis or reports presented. So a company should work in
harmony with the environment and try to avoid unethical implications.
Sales and marketing department: Ethical conflicts originates from the different needs
and wants from the customers. It is a great deal of ethical issues which arises from marketing
policies such as way of communication with customers and methods of pricing and distribution.
Thus ethical practices are those where sales and marketing team do not target vulnerable
customers to consume or use spoiled, unsafe or spare products or services. They should ensure
that products have been correctly labeled and tells customers what they are purchasing exactly.
So the company should offer their products to customers by keeping ethical standard in their
mind.
Production department: Ethics also concerned with this function where an organisation
has to follow while handling of activities necessary to provide the organisation's product or
services. These activities include planning, scheduling control, supervision of production
workforce which should be done in an ethical manner. A company should also manage the
product quality and maintenance of plant and equipments that comes under the ethical standard.
Research and development department: Ethics also plays an important role in this
function as it is concerned with developing new products or processes and improving existing
products. This activity is related to the organisation's marketing activities to ensure that the
business is providing exactly what its customers want in the most efficient, effective and
economical way. So the company should provide good quality products and satisfy the customers
want by exercising ethical standard.
With reference to this, Deliveroo has been considered which is a online food delivery
company founded by Will Shu & Greg Orlowski in London. This company follows ethical
standard by following the mission of transforming the way customer eating choices with good
quality. By constantly innovating and expanding, they offer best choice, convenience great food
direct to customers as fast as possible.

TASK 4
P5) Different ways of decision-making to work in global environment
Global environment is the combination of various elements and put a profound influence
on the overall process of decision-making. In each and every business, decision making is highly
important in order to ensure business success & growth. In reference of Deliveroo, there are
various factors affect the decision-making which are mentioned below:
Strategic decision-making: In business, strategic decision-making is based on the
evaluation of different elements. Here, appropriate planning is done in order to take effective
decisions in an efficient manner.
Innovative decision-making: Now, innovation has become an important element of
decision-making. Without innovation, it is quite difficult to ensure long-term success & growth.
Innovation is helpful in making different products or services in order to grab the attention of
buyers (Kumar, Giridhar and Sadarangani, 2019). In Deliveroo, they are likely to use creative
ways and elements while taking business related decision. With this, it is possible to create
unique & innovative solutions that will prove beneficial for the organization in future period of
time. Innovative idea will lead the company towards success and also ensure competitive edge in
the market place.
Participative decision-making: There are several employees who work together to
accomplish the per-defined goals in an efficient manner. Currently, diversity among the
workforce has been increased due to globalization. Every employees has a unique mindset in
term of opinions, thoughts, perception and more (Dinçer, Yüksel and Adalı, 2019). They
participate in the decision-making process so that the better and effective decisions can be taken.
To take successful business related decisions, it is imperative to allow each and every individual
to participate in decision-making. In reference of Deliveroo, they encourage workforce to
participate in the process of decision-making so that the better and effective decisions can be
taken for the future growth and enhancement.
Differentiators: Here ,unique factors need to consider during the decision-making. In
context of Delieveroo, they can make suitable decisions in order to create difference in terms of

products, price, quality and so on. By maintaining differentiation, it is possible to take suitable
decisions for future growth.
Economic Logic: While taking business related decisions, it is required to consider their
economic impact as well. In this context, decision needs to be taken based on the rational
regarding the cost and profit margin (Vătămănescu and et. al., 2020). In Deliveroo, they are
required to follow the economic logic so that the overall revenue & profit of business can be
enhanced easily.
P6) Routes to internationalize that can be adopted by a business entity and also discuss the
potential barriers
To meet with the existing level of competition, organizations are also expanding globally.
While a firm determines to go internationally, they can follow ample of ways which are outlined
below:
Licensing: Under this, permission is granted by one entity to another to utilize their
assets like trademark, patent, copyright and more. For Deliveroo, they can also adopt this
approach in order to improve their market presence significantly.
Joint Venture: It refers to the combination of two or more companies to attain common
goals. Here, resources of different companies are combined together so that the business can
grow ans succeed (Usunier, 2018). In context of Deliveroo, they can also enter into a joint
venture with one of the local companies. It will help in gaining knowledge regarding the local
culture and values that will help the business organization to ensure future sustainability.
Barriers of internationalization
Financial barriers: During expansion, a company requires huge amount of funds. If
funds are limited, it might create an issue in maintaining consistency in business. In addition,
arranging huge amount of funds is also not easy (Kasemsap, 2018). In reference of Deliveroo,
they are required to identify potential sources of funds in order to fulfill the future requirements.
For this purpose, they also need to identify potential risk associated with each and every source
of fund.