Deliveroo's Global Business Environment: Opportunities and Challenges

This report provides an analysis of Deliveroo's global business environment, focusing on the key factors that drive global commerce and trade, including cost, market, environment, and competition. It examines the impact of digital technology on Deliveroo's operations and evaluates the opportunities and challenges the company faces in the global market. The report includes a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors affecting Deliveroo's expansion. Furthermore, it evaluates strategic challenges, recommends solutions, and discusses the influence of globalization on organizational governance, leadership, structure, culture, and functions, including an examination of Hofstede's cultural dimensions. The report also addresses the impact of ethical and sustainable globalization on Deliveroo's organizational functions and critically evaluates the barriers to globalization, recommending strategies to overcome them. Finally, it explores the strategies adopted by Deliveroo to adapt its organizational structure and decision-making processes to the global environment.

Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Key factors of cost, market, environment and competition that drives global commerce and
trade........................................................................................................................................1
Impact of digital technology on global business environment...............................................2
Impact of key factors upon global business environment in terms of opportunities and
challenges...............................................................................................................................3
Evaluation of strategic challenges..........................................................................................5
Recommendation to overcome the challenges.......................................................................5
Evaluate the influence of globalisation organisational governance and leadership, structure,
culture and functions..............................................................................................................6
Hofstede cultural dimension model........................................................................................7
Evaluate the influences of ethical and sustainable globalisation on organisational functions8
Discuss and critically evaluate the impact of globalisation on the organisational culture and
structure..................................................................................................................................9
Critically evaluate the key barriers and recommend the ways to overcome them...............10
Strategies adopted by the organisation to adopt their organisational structure and decision
making process.....................................................................................................................11
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12
Books and Journals...............................................................................................................12

INTRODUCTION
Global business environment refers to the activities that occur around the world in the
business, this market is highly influenced by various factors and this needs to be managed well.
Business often adapt to several strategies so that they can effectively manage the rapid changes
that the business is going through (Blommaert, 2020). Global environment is highly influenced
and impacted by the technological changes and innovations and business must address these
changes in order to sustain in the environment for a long time. Business which are expanding
their operations around the globe is exposed to various kind of challenges as well as
opportunities. In this report, Deliveroo this considered which is a multinational company based
in London UK dealing in food delivery and services. Report covers the global aspects let the
respective organization has to go to along with this the key factors of environment he discussed
in contrast with challenges faced by the company in operating at a global level.
MAIN BODY
Key factors of cost, market, environment and competition that drives global commerce and trade
Globalization is one of the most common technique that the business adapts to if they want to
expanded operations, this is first two exchange of goods and services between the customer and
organization at a global level. This expansion process is difficult as the business has to face
several challenges which directly impacts the current operations in the business. The process of
globalization is Important for the organization as well as the government of the country as it
assists in developing and increasing the per capita income of the country. Deliveroo is looking
for global exposure as they want to increase the profitability end there scale of operation in the
business (Bretos and Marcuello, 2017). The want to dominate the market share off the foot
delivering sector in the other countries as well. But there are several factors that directly impacts
the process of globalization that the Deliveroo will go through, few of them are discussed below:
Market factor: The businesses which deals in the domestic market has less scope have come
back to the business which is dealing in an international market. Deliveroo currently operating in
12 countries and wishes to expand more and take competitive edge in the other countries as well.
They can adopt new customer base fir their food delivery services in other countries as well.
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Cost factor: the cost which is incurred in the business for operational activities differ in every
country, the organization is required to bring the best cost strategies so that they can give
competitive edge in the market. In context of Deliveroo, they need to communicate with several
restaurants so that they can know the price at which they can operate. The organization is
required to come up with several cost strategies in order to maximize the profitability in the
business.
Competition factor: Before entering the global level or any other country the organization is
required to analyze the competitive factor in their respective country. It helps the business in
making strategies on which they will operate in the respective country (Dauvergne, 2021). The
food delivery industry does not have much competition currently which gives a benefit to
Deliveroo as they can further expand their business in the countries where the competition is
less.
Environment factor: The area in which the business operates is known as environment, this area
is a mixture of several factors which impact the way in which business deals. During the process
of globalization environmental factor is one of the prime thing that impacts the scale of operation
of business. In context of Deliveroo, they need to evaluate the environment in which they will be
expanding there for delivery services.
Impact of digital technology on global business environment
Global business is highly dependent on the technological factor as the innovation helps and
implementing successful strategies in the business. While expanding in a global market the
companies need to make sure that there technology is highly innovative and right fit into the
market. Technological improvement is essential in a company like Deliveroo as the online
delivery system is totally based on the AI (Dong and et. al., 2017). The technology that the offer
to their customers is one of the prime service and their experience should be smooth so that they
will consider their organization over others. With the help of Information technology the
company can effectively operate the business in different countries as the communication will be
quick and employees will be in touch. Deliveroo can take advantage of this situation and
implement highly innovative technology in the services so that they can gain competitive edge
and acquire a good market share in the new diversified countries. Deliveroo can also use the
digital technology in managing their Orders, this will assist them in maintaining the information
and database.
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Impact of key factors upon global business environment in terms of opportunities and challenges
Global environment is exposed to several factors and hence gets influence in impacted adversely
by these factors. There are several implications and organization which brings challenges as well
as opportunities for the business. The opportunities in the organization are generated as the
business is exposed and the global market well there are high chance of growth. There are
several opportunities in the business such as diversified market, more options to innovate the
idea in Deliveroo. A major challenge while operating in a global market is competition as the
organization is supposed to compete with market players of several countries (Dunne and Reus-
Smit, 2017). The organization must deal with competition and the best manner by implementing
strategies, this will help the business in sustaining in the environment for a longer period of time.
Deliveroo is the food delivery company so they need to adapt to the culture and habits of the
people in order to effectively leading the market.
PESTLE analysis of Deliveroo
PESTLE analysis the tool that is used by businesses in order to manage the macro factors as they
impact the operations and profitability of the business. This analysis is helpful in determining
risks and further helps in making strategies in dealing with these factors. The outside
environment is full with factors which directly impacts the business. PESTLE analysis covers the
major six factors which have impact on the business, these six major factors are discussed below
in context of Deliveroo:
Political factors- These factors are related with the government and their actions that have
impact on the operation of the organisation. While the business is expanding its operation on a
global level it is necessary to evaluate the political factors as every country would have different
factors which the organisation need to consider. In context of deliveroo, their operations in
countries where the service tax and other taxes on service companies are high then the
organisation will struggle in generating revenue. The organisation needs to consider the other
taxes and implications that the government has imposed on a company dealing in such sector. If
the taxes and implications are high in the expanding country then this will negatively impact the
business. On the other hand if there are less implications on the company and can operate freely
in the expanding country then it will positively impact the business for sure
Economic factors - this refers to the components that are related with the economy of the
country in which the business is thinking of expanding. These factors include such as the
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inflation rate, the gross domestic product and economic policies in the country (Goodwin, 2020).
Generally these factors impact the profitability and scale of operation of the business. In context
of deliveroo, they will earn good amount of revenue in the expanding country if the overall
economy of the country is booming which will positively impact the business. On the other hand
id there is a recession period in the economy of the country then they will face losses which will
negatively impact the business.
Social factors- these are the factors which are related to the reaction of society in which the
business is dealing such as social trend, behaviour and tastes of the consumer. Globalisation is a
process of expanding operations into new countries, every country has their own culture and set
of values which the organisation needs to consider in order to effectively operate there. In
context of deliveroo, their service is of delivering food and they need to attract customers
through attractive techniques. The organisation must understand the social trend that is going on
in the country as this will help them in raising their sales and further operating in the country. If
the organisation is able to understand and analyse the behaviour of the customer in the target
country then it will positively impact the operation of the business as they will know the
techniques to attract more and more customers. If the organisation is unable to understand the
culture of the expanded country then there will be problem in getting customers and acquiring
them which will negatively impact the operations of business.
Technological factors - these factors related to the advancement and innovation in the new
technology that the business is associated with. It is important that business adapt and use the
latest innovations in technology in there production and operational field as this will help the
business in enhancing the productivity and the quality of service that they are providing to the
customers (Gui, Liu and Du, 2019). In context of delivery, there AI based software which is used
in the Taking orders from the customers must be smooth and fast so that customers can
experience good quality of service from the company. Further the company should apply the best
Technology in the delivery sector which is in their auto motives as this will help the business in
the fast and smooth delivery.
Legal factors - These are known as the factors which bring legal obligations in the business if
the organisation is unable to handle the laws that are imposed by the government of the expanded
country. Every business in the environment is entitled to follow some laws and in case the laws
are not followed then the organisation is at risk of legalities against them. In context of deliveroo,
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they must follow the Laws that are imposed by the government on this service based sector. If
the organisation is unable to follow the Laws and obligations then the organisation will face
major charges against him and this will impact the image of the business. This will negatively
impact the business and they must follow the laws and rules that are imposed by the government
and authorities.
Environmental factors - the business is obliged to sustain the environment in the best manner by
following the deeds which will help in making the environment green and safe. Environment and
business both have power of impacting each other and this the business must operate responsibly
(Hasan, 2019). In context of deliveroo, there are environmental factors are not using off
polythene bags in the delivery and usage of carbon free emission vehicles. If the organisation is
able to use this environmental factors in Dear favour then it will positively impact the operations
of the business and vice versa.
Evaluation of strategic challenges
From the above critical evaluation off different conditions it has been analysed that
deliveroo might face problems and competing and adapting to the culture of different countries.
During their expansion they also may face legal challenges that are implied on the service based
companies which are coming from other countries. Due to high taxes and implications they may
need to rise there service charges which will impact the growth of the business in the new market
as they won't be able to provide a competitive price in the industry. Globalisation of deliveroo
has brought several such challenges and the organisation must smartly make strategies in order to
deal with these challenges.
Recommendation to overcome the challenges
Deliveroo need to come up with strategies that will help them and understanding and
adopting the culture of various countries and their social behaviour and conduct. They need to
conduct special training sessions for the employees as they need to train them in the
technological field so that they can effectively operate the AI system of the company. They
should expand in countries in which the service taxes are less as they will be able to provide a
competitive price and will be able to sustain for a longer period of time in this specific country.
As these challenges are impacting the operations of the business and they are somehow hindering
the true potential that organisation has in terms of growth in the environment. They need to make
strategies by using above stated techniques to effectively deal with changes
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Evaluate the influence of globalisation organisational governance and leadership, structure,
culture and functions.
Structure - organisational structure refers to the Set off ways in which the organisation operates
its functions. These organisational structure helps the business in attaining the objectives. This
structure helps the manager in making the work smooth and productive in the culture (Jessop,
2017). In context of deliveroo, they follow an organisational structure that helps them in assisting
the delivery services they are in to.
Leader refers to the person who has abilities to influence and motivate employees in order to
make them achieve the goals and objectives. These people help the business and emerging to
new heights and further providing the direction to the workforce. The term culture refers to the
social behaviour that is followed in the organisation and the norms on which the employees work
in the business.
McKinsey 7’s model
This model helps the business in aligning the leadership strategies that is followed in the
business, it covers the major seven elements which helps the business in productivity.
Globalisation is it diversified prices and affects the overall operations of organisation, it also
impacts the structure and the leadership style that the business follows. To evaluate the business
model and leadership style of deliveroo McKinsey 7s model is applied below:
Hard elements
Strategy - strategy is one of the most important element well globalisation as the challenges and
the threats can only be dealt with effective strategy made by the manager of the company. These
strategies should be well communicated to every employee working in the organisation as it will
assist in proper implementation (Korinek and Stiglitz, 2021). And context of deliveroo,, they
need to come up with several strategies to deal with the challenges that they may face and the
country in which they are expanding.
Structure - this refers to the way in which organisation operates its functions, in context of
deliveroo they follow a transparent culture in which they promote honesty and trustability. They
have divided the tasks according to the department and delegation of authority and responsibility
is also done at the right level.
Systems- this helps in evaluation and creation of the system that's need to be implemented in the
business in order to well execute the strategy that has been made by the manager of the company.
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Soft elements
Shared values- Deliveroo follows and promotes the culture in which the employees of the
organisation are well connected with each other where they share oneness and togetherness. That
generally ignores the concept of individualism as the company wants to achieve the organisation
goals as one.
Style - This efforts to the leadership style that has been followed in the organisation. In context
of deliveroo they follow a mixture of two leadership style which assist them in dealing with all
the major situations in the business environment. They follow mixture of participated and
transformational leadership style where the employees are told to participate in the decision
making process of the business. The follower decentralised structure of responsibilities and
authorities which helps him quick decision-making.
Staff- this refers to the technique of hiring employees in the business who have relevant skills
according to the job (Lerner and et. al., 2018). The business who have good employees is more
likely to achieve its goals, and context of deliveroo the follower proper process of hiring and on
boarding employees.
Skills- these are one of the most important aspect that helps the organisation in attaining the
goals. Every employees are expected to have the skills that re relevant to the job. In context of
Deliveroo, they need to develop skills of the employee in the field of technology as this will
assist them in globalisation process.
Hofstede cultural dimension model
This model is helpful in the organisation when there is a process of expansion across different
countries. This helps the business in critically evaluating the several dimensions of the
organisational culture (Oberoi and Halsall, 2018). Deliveroo must evaluate the culture as they are
expanding their business and operations across the world.
Power distance index- this index helps organisation and evaluating the tolerance of inequality in
the business. High pointer in this index suggests that the business have a culture which is leaned
towards inequality and encourages beurocracy. And vice versa of this is considered in the low
indicator. In context of deliveroo they have a low indicator of this index as they do not promote
the bureaucracy in the business.
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Individualism and collectivism - deliveroo as discussed above prefers the concept of
collectivism where the organisational goals are more appreciated in the business. Individualism
is a concept of personal goal which is generally avoided in the case of deliveroo.
Masculinity versus femininity - deliveroo has seen more of masculinity as there are more male
employees and the culture is majorly driven by them. Femininity refers to the place organisation
in which the dominance of female is more.
Uncertainty avoidance index - a higher uncertainty avoidance index the first to the please wear
the business faces high fear against the uncertain situation and they faces major issue in dealing
with them (Ogar and Ogar, 2019). A low of this index on the other hand suggest that the business
has good capacity of dealing with the uncertain situations. In context of deliveroo they currently
have a low of this index and they need to continue this trend in the global market in order to
sustain.
Long term orientation versus short term orientation- this refers to the approach that is followed
by the company in order to do the functions and achieve objectives. Short term orientation is
based on the quick goals and delivering them and a very short span of time. In context of
deliveroo they follow a long term orientation approach in the business.
Indulgence versus restraint- Indulgence is a free concept where the life is enjoyed and there are
no restrictions from the society. In context of deliveroo they also follow indulgence culture in the
business as it helps in improving the organisational culture.
Evaluate the influences of ethical and sustainable globalisation on organisational functions
Globalisation refers to the process of free flow of goods and services on an international
level. Sustainable globalisation refers to the rapid elaboration a combine activities off the
organisation with the aim to easier the management decisions.
Sustainable globalisation in various organisations functions are discussed below-
HRM – Human resource manager needs to effectively grab on the opportunity of technology and
it analytics so that they can build a global workforce which has capacity to compete with the
current marketplace. In context of deliveroo, this system will help the organisation and analysing
the information so that they can come up do some business insights and predict the need of the
future. From this they can also make effective strategies and they can improve their capability to
anticipate challenges and threats.
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Finance - While expanding on a global level finance is one of the major component of the
business. Finance follows a very specific mechanism and organisation as it is related with the
growth structure that the business follows (Rafindadi and Usman, 2019). In context of deliveroo,
the financial structure must be followed in a proper way otherwise there will be continuous loss
in the revenue generation.
Handy’s model is applied below on the deliveroo in order to understand the different culture
followed an organisation-
Power culture- This is first to the culture in which the power is in a single persons hand and he
has the ability to impact the operations of the business. In context of deliveroo, their CEO and
managing director has good amount of power to change the course of business.
Role culture – This refers to the culture in which a particular role is assigned to every person
working in the organisation according to their skills and abilities (Zaidi and et. al., 2019). In
context of delivery, they have assigned a specific role to every department which helps them in
smoothly increasing the productivity.
Task culture – This culture focuses on the job oriented part where the specific tasks are done. In
context of deliveroo, they often create groups to which they assign a specific task which requires
some kind of innovation from the employee side.
Person culture – This refers to the culture in which every individual is valued and their skills are
regularly developed with the help of training sessions. In context of deliveroo, they conduct
several training session in order to enhance and furnish the skill sets of the employees.
Discuss and critically evaluate the impact of globalisation on the organisational culture and
structure
From the above discussion it can be analysed and evaluated that structure in the culture of the
business gets impacted when there is a global exposure. Culture plays an essential and significant
role in impacting and influencing the structure and operational level of the business. While
expanding and the new countries organisation needs to manage the society, culture and values as
every country is different in these terms. Deliveroo is recommended to critically analyse and
evaluate the culture of the country in which they are thinking of expanding as it will help them in
increasing their revenue.
Evaluate the different ways decision-making can work effectively in a global context –
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