Deliveroo: Globalisation, Governance, Leadership & Decision Making

This report provides a detailed analysis of the global business environment, focusing on Deliveroo as a case study. It examines key factors driving global commerce, such as cost, market dynamics, and competition, and explores the strategic challenges companies face when operating internationally. The report investigates the influence of globalisation on organisational governance, leadership, structure, culture, and functions within Deliveroo, as well as the impact of ethical and sustainable practices. Furthermore, it discusses various approaches to effective decision-making in a global context and identifies different routes to internationalisation, including potential barriers. The analysis draws upon economic integration levels, trade and investment opportunities, technological advancements, and marketing components to provide a comprehensive understanding of Deliveroo's strategic positioning and operational considerations in the global marketplace.

Global business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................5
MAIN BODY...................................................................................................................................6
LO1..................................................................................................................................................6
P1 Analyse key factors of cost, market, environment and impact that key factors competition
that drive global commerce and trade.........................................................................................6
LO2..................................................................................................................................................8
P2 The complexity of strategic challenges faced by companies when operating in a
international business environment supported by different examples........................................8
LO3 .................................................................................................................................................9
P3 The influence of globalisation on organisational governance and leadership, structure,
culture and functions...................................................................................................................9
P4 The impact of ethical and sustainable globalisation on organisational functions................12
LO4................................................................................................................................................13
P5 The different ways decision making can work effectively in global context......................13
P6 Determination of various routes to internationalisation an organisation may adopt,
including key barriers................................................................................................................14
CONCLUSION .............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Global business environment is considered as the combination of different external
economic and non-economic operations which impacts on a business entity in international
market. It is essential to focus on global business environment for large multinational companies
to develop competitive advantage (Akhtar, and Sushil, 2018) The companies in global
marketplace should also prepare a strong strategy to overcome various challenges and issues in
international marketing environment. In this project, example of Deliveroo company is taken into
consideration which is a large multinational company located in London. The company operates
in delivery sector in London and provides best delivery services. The company was founded in
the year 2013 and has expanded its operations in over 800 towns and cities across 12 countries
which are spread over different continents. Deliveroo is also now planning to expand its
operations in the international marketplace with the help of effective operations and functions.
This project includes analysis of external environment for the company to develop and expand
operations in the international marketplace. The report also covers key factors which
globalisation and strategic complexity associated with operating in international environment.
This project also covers the impact of globalisation on company's strategy and decision making.

MAIN BODY
LO1
P1 Analyse key factors of cost, market, environment and impact that key factors competition
that drive global commerce and trade
Different levels of economic integration
In the functioning of a business at the marketplace it is very much essential for a
company to develop effective economic integration (Alshare and Sewailem, 2018). The
companies like Deliveroo should focus continuously on different economic factors and their
integration for achievement of sustainability in the operations. The major levels of economic
integration for Deliveroo are mentioned below:
 Preferential trading area- The preferential trading area is a type of space which is set
by the company as a location for trading. In this level, a priority area is selected by
Deliveroo to perform trading operations. The preferential trading area is also referred as
the major area in which export and import related operations of a company are
performed.
 Free trade area- It is considered as a major profitable area which is developed by a
business entity to perform trade with no custom duties. The trading in a free trade area is
performed with less amount of indirect and direct taxes. In a free trade area, the
operations which are performed by company helps in delivering good profit to a business
firm.
 Single marketplace- In this approach, a company selects a target marketplace which is
single. In other words, Deliveroo selects market which consists of preferred target market
that sells only a single product. The meeting of customer's demand and supply is easy in a
single marketplace and that also helps in increasing sales and profitability of the
company.
Trade and investment opportunities
In the international marketplace, there are various trade and investment opportunities
available at the marketplace. In the international marketplace, there is a huge requirement of
capital investment which play a key role in developing the company (Bag, 2018). The trade
opportunities in global marketplace helps the company to lead marketplace with major

development in functions of the company. In order to expand operations in the international
marketplace it is essential for Deliveroo to analyse all the trade and investment opportunities in a
systematic manner. The company can also take advice and support of financial management to
develop different types of operations.
Technological advancements
In the business organisations that are competing in the international marketplace, use of
information and technology plays a crucial role. The companies in international and national
marketplace take into consideration use of advance software and computer systems to perform
accurate and safe operations (Barr, and Rout, 2018). Deliveroo can also deploy trained and
skilled IT professionals in order to determine the external environment in a well defined manner.
Companies should also develop effective approach in understanding the impact of technology
and take help of various IT experts to perform safe operations. The companies should also use
big data technology for maintaining large database related to different customers.
The cost of operating internationally
In the international business environment, there is a need for the companies to perform
large amount of investment for conducting business operations.. The companies should also
calculate the cost related to export and import for business development. It is important for
financial management of a company to analyse all costs like fixed, variable and marginal cost.
Also the financial management of Deliveroo should analyse all the business transactions of
financial nature and record them in a systematic manner. The company should also prepare final
accounts at the end of financial year to know the exact financial nature. Cost of operating
internationally in global marketplace is very high and business organisation should look for
appropriate sources of finance.
Marketing components
The marketing activities are considered as backbone of every business, which helps it to
develop at marketplace by increasing its sales. Marketing components also play a crucial role in
developing the parameters of market by developing marketing mix (Belyaeva, 2018). Marketing
plan should include product as a major component which is termed as final output produced by a
company. The price of product of Deliveroo is also a very crucial component that helps a
company to formulate reasonable price for the products and services to seek attention of large
number of customers at the marketplace. In the marketing components, promotion is also

considered as a major element which helps a company to advertise and perform publicity of
products and services.
LO2
P2 The complexity of strategic challenges faced by companies when operating in a international
business environment supported by different examples
It is important for a company to develop strategic approach in order to deal with major
challenges at the marketplace. The complexity of challenges depends upon, level and nature of
challenges which are faced in the international marketplace. It is also major responsibility of a
company to analyse all the challenges and their complexity for systematic growth of company. In
the long and short run, a business entity should follow ethics while dealing with the complexity
of strategic challenges (Bidault, and Ring, 2018). A company in international and national
market like Deliveroo should take help of strategic and top level management to overcome
various issues in a short span of time. The complexity of challenges is rigid in nature and it also
requires professionalism to tackle different issues. In order to eliminate risk associated with the
operations, a company should effectively develop planned approach for gaining desired success
in the international marketplace. Many operations like investment, export policies, policy of
government and trading policy are a type of major challenges for the company. In order to lead
the marketplace with greater competency edge, it should be compulsory for Deliveroo to take
advice of board of directors. The complexity of challenges requires highly skilled and trained
workers. So it is the major responsibility of human resource management of a business to hire
skilled workers. For the existing employees, a company must provide effective training to the
workforce on regular basis. In the long run also, a company should take help of strategic
management to deal with various issues. Companies should also formulate and design strategic
business plan in the global marketplace to deal with different issues. The complexity of various
challenges may also negatively impact on operations of the company and can reduce its
profitability. Many successful companies in the international market take the consent of top level
management in order to simplify the operations (Chukhray, and Mrykhina, 2018). Companies
should also develop supervision and control on different operations and functions in order to
establish effective marketing approach. In order to minimise the risk associated with various
operations Deliveroo can also take into consideration effective short and long term business

plans. In order to execute the plan, international companies can also use information and
technology for sustainability and growth at the marketplace. The companies can also take into
account performance management of the employees to lead the marketplace.
LO3
P3 The influence of globalisation on organisational governance and leadership, structure, culture
and functions
Globalisation on governance: Governance can be described as process of interaction of
business through laws, norms and language of a organised society over different social system. It
consist different rules as well as process which helps firm to direct and control different practices
and systems (Eberlein, 2019). It consist interest of stakeholders in a balance way which includes
employees, customers, management suppliers and others. Increasing trends of globalisation
create various impact on business sand its rules, structure and systems. Business of Deliveroo
can be influenced with corporate government that assist company for promoting proper
utilisation of different resources in administration as well as economic system of company. It
allow managers of Deliveroo to follow different laws, regulation and expectations in a society
that helps to meet demands and needs of company. Globalisation leads to various changes related
to use of corporate assess in a effective manner.
Globalisation on leadership: Globalisation create various impact over styles of
leadership which is adopted by managers of Deliveroo that can be influenced with situational
theory. There are different types of situation occur in company where leaders needs to select best
action which can be completely depend on situation. With increasing globalisation, dynamics of
business has changed frequently. As per this theory, leadership style can be changes as per
situation in which decision are made as per situation. For instance, in situation where leader has
proper experience and knowledge can adopt authoritarian leadership whereas in situation where
members of group have more skills then can be use democratic leadership. It is important for
managers of Deliveroo to understand in which situation which types of leadership is more
suitable which assist them for purpose of influencing economic process.
Globalisation on Structure: Globalisation can also crate influence over structure of
company as it direct different activity which are important for purpose of attainment of goals and
objectives of business (Fraedrich and Bagherzadeh, 2018). It consist different roles,

responsibility of an organisation which create influence over globalisation. It can be understood
with helps of Mckinsey's model which are explained underneath:
Mckinsey's model: It is one of tool which can be used by companies for purpose of
analysing design of organisation with using different elements like structure, systems, staff,
skills, shared values and other things which assist companies for purpose of attainment of
objectives of companies. It is a model that was given by McKinsey in the year 1980.
 Strategy: Strategy refers to a plan that is developed by companies for purpose of
attainment of competitive advantage successfully that allow them to compete in market
(Hartono and Kusumawardhani, 2019). It is a sound strategy which helps managers of
Deliveroo for purpose of attainment of competitive advantage and also allow them to
develop strong mission, vision as well as values for business.
 Structure: Structure refers to a way in which business division as well as other units can
be organised and also provide them information about who is responsible to whom. It is
easier for managers of Deliveroo to make changes in their structure if company planning
to expand their business or adopting new technology.
 System: Systems refers to process as well as procedure of a business that helps to reveal
different activities of business and also to process in which decisions are made. It helps
managers of Deliveroo to understand how business can be done and focus in managing
changes in organisation.
 Skills: Skills refers to ability that can be developed by firm in order to perform in
effective manner. It consist capability as well as competencies which helps managers of
Deliveroo to manage different changes in their organisation.
 Staff: Staff is a element that is concerned with type of employees and numbers of
employees require for an organisation (Hickmann, 2017). It order to have skilled staff in
company, managers of Deliveroo needs to recruit employee, trained them and reward
them for their performance.
 Style: Style can be described as ways in which company is managing different managers,
their ways of interaction, actions taken by them and their symbolic values. Managers of
Deliveroo can be used different style of management in organisation which can be also
influence with globalisation as different leader has different styles of managing people.

 Share Values: Share values are core of this model as it can be defied as norms as well as
standard that guide behaviour as well as action of company which are considered as
foundation of every organisation. Managers of Deliveroo needs to follow these shared
values in an organisation.
Globalisation on Culture: Globalisation also create culture of company as there are
different language, religion, social habits, cuisine, music which crate influence over culture of
company (Hunt, and Raman, 2017). Adoption of globalisation in Deliveroo create impact over
culture of company which can be explained through Hefstede dimension:
Charles Handy Model of organisation culture: It is a culture model which can be
introduced by Charles Handy in the year 1932 which is known philosopher who has
specialisation in culture of organisation. There are manly four types of culture in an organisation
which are mentioned below:
 Power Culture: Some organisation adopt power culture in which power of company can
be centralise in hands of few people who are authorise to take different decision. There
are only some people who can enjoy privileges at business. In Deliveroo, these people are
consider as important who make major decision at workplace.
 Task Culture: It is another culture where teams are formed in order to attain targets and
also solving specific problems occur in an organisation. In Deliveroo, while managing
impact of globalisation, company face different problems and in order to solve these
problems, individual with similar specialisation and interest form a team.
 Person Culture: In some culture, employees feel more important at workplace. With
adoption of this culture, managers of Deliveroo can be more concerned about their self
instead of organisation.
 Role Culture: Role culture is a another types of culture where employees are delegated
with different roles and responsibility as per their qualification and specialisation.
Implementation of role culture in Deliveroo helps employees to be accountable for
something.
Globalisation on function: Globalisation also create influence over duration of company
which can be positive and negative (Kasemsap, 2018). It can be positive or negative as with rise
in globalisation, there is increasing numbers of competitors who are completing with a company.
It also results in frequent changes in taste and preference of customer which are preferring high

quality of goods and service. Deliveroo is an organisation which can gain more profit by
expanding its operation in more countries. Globalisation create various opportunities for a
business like merger, joint venture, with large market that provide them cost benefits. It also
create negative impact on basis of Deliveroo as globalisation allow more foreign companies to
operate in home countries which increase competition fro companies. It leads to fluctuation in
prices and also increase job insecurity due to increasing trends of outsourcing.
P4 The impact of ethical and sustainable globalisation on organisational functions
Ethical as well as sustainable force play important role in a business at international level.
Government made different regulation for business and following all these regulation by
Deliveroo is important for purpose of getting competitive advantage for business. Some of these
factors are considered by business which are mentioned below:
Environmental and regulatory consideration: It is essential for an organisation to fulfil
all regulatory requirement made by government while operating at international level. Managers
of Deliveroo is adopting all regulation of government related to environment by controlling
pollution and also protecting environment (Kasemsap, 2020). In order to protect environment,
business is adopting new technology which assist them for disposing wastage material and also
allow them to adopt recycling process that provide them competitive advantage as there is
increasing awareness among people of UK for environment.
Social and cultural factors: There are different types of cultural and social factors in
business which create impact over business. It is important for managers of Deliveroo to
understand different social and cultural norms in order to perform different functions of business.
It helps to enhance profitability of business and also provide them opportunity.
Cultural marketing consideration: It is not not sufficient for business providing
products that are suitable for business requirement (Keivanpour, and Mascle, 2017). It is also
important for managers to increase awareness among customers about cultural norms of
company. Managers of Deliveroo is developing different advertisement in which thy are
promoting their cultural norms and sustainability practises which is important in order to develop
positive image of company and also to gain competitive advantage in market.
Proper wages and benefits: Another ethical issues faced by a company at international
level is related to wages and benefits. A company is focusing on hiring employees at lower
wages rate which is important for them to enhance profit of organisation. Deliveroo is one of