Business Report on Organisational Structure, PESTLE and Competitors

This business report examines the organizational structure, specifically comparing functional and matrix structures, and applies this analysis to a food delivery company. It then conducts a PESTLE analysis to assess the suitability of Sydney, Australia, as a market for Deliveroo, considering political, economic, social, technological, legal, and environmental factors. Furthermore, the report utilizes Porter's Five Forces to evaluate the competitive environment Deliveroo would face in Sydney, analyzing supplier power, buyer power, competitive rivalry, threat of substitution, and the threat of new entry. The report concludes with insights into how Deliveroo can best position itself for success in the competitive Sydney market, considering both internal structure and external forces.

BUSSINESS REPORT
Organisational structure
Companies all over the world have different organizational structures. The companies may
have similar goals but different ways to achieve it. It ensures a good flow of work and
everyone knows his or her responsibilities. A company needs an organisational structure to
run well. A food processing company may produce fish as an end product but different
companies use different organisational methods to make this possible. The structures are
made and the differences in the flow and classification of the head of the companies.
There are various types of organisational structure; functional structure and matrix structure.
Functional structure have specialized units, the organization is divided into different units
under one management. It does not change quickly, the units are put according to the work
they perform example; information technology department and marketing department. All the
units under one manager or CEO. The overall head is responsible for the oneness of the
different units. One single activity is conducted in one unit, it maximizes performance of a
unit. Leaders may also place an employee in a unit, if he or she is not effective you change of
them and try to find a unit they can fit well, where they maximize their potential you place
them there (Silverman, 1971)
Advantages of a functional organization; one is able to specialize in a unit, a student can
narrow down to the unit one needs. Coordination at each level is easier, the different
departments are able to liaise and work together. Management efficiency is great and leads to
profit and productivity. It is suitable for small organizations. The disadvantages of the
organization; decision making process is slow since you have to consult with the other units
to come up with a solution.

Matrix organizational structure, it is a very confusing structure. One has to report to various
areas of work and different leaders. It is very efficient in decision making since decisions are
made quickly but employees are subject to a lot confusion and conflicts when fulfilling tasks.
Advantages of the structure is that information is passed down efficiently and motivation of
the employees is direct thus increasing productivity. The disadvantages include internal
complexity which results in complexity and it is costly. To manage and sustain the many
managerial posts is complex. The internal complexity confuses the workers and their
productivity is affected.
According to the management theory, an enterprise should follow and adapt a structure that
contributes to the success of the goals. It also explains how the management relates with the
employees. According to Henry the management model would best favour the functional
organisation structure as compared to the matrix organisational structure.
The functional structure favours direct employee activity, the employees work together to
achieve a common goal. With the various units present in the functional structure employees
are able to be accountable to each and everything they do (Silverman, 1971)
An example an online company that delivers food. The IT department deals with all the
orders, the managerial team ensures each unit is running well, the kitchen team ensures food
is ready on time and it fresh and finally the transport team gets the food on time to the
customer. In a way all the units are brought together by the model, they work in conjunction
with each other in order to deliver to the customers. People are able to grow and specialize in
the different units as compared to the matrix structure.
In terms of control, IT employees have a manager to whom they are answerable it makes it
easier to note and correct a problem as compared to matrix structure. In the matrix structure
one is accountable to so many people and hence a problem is not easy to not and solve.

A management structure has to be affordable and saves cash. Matrix structure is very
expensive due to the many people in control. For a functional structure, we only have unit
heads and the overall head this helps save a lot of money (Silverman, 1971)
pestle analysis
For any company to enter into a new market, it has to analyses the favourability of the place
for its business to success. For online business companies, it has to select a region that its
consumers are using the internet most of the times. Australia was ranked top ten among the
friendly places to do business in the world since it has a favorable economy for conducting
business. Sidney is one of the cities that Deliveroo can take its online business. Sidney has
one of the largest population in Australia with about 22, 000 in the center of the city with the
whole area having 4 million people. This is a large population that can be targeted for
conducting business. Sidney is the favorite place compared to Adelide which has a population
of about 1.3 million people (Selvanathan et al., 2011, 20)
Politically, since Deliveroo is conducting an online business, it has to work with restaurants
on the ground for the transporters to pick orders from these restaurants. This means that it
requires to work with the government and be on the right side of the law to ensure the smooth
running of the business. For the transport to be smooth, it should ensure that it is worker
friendly. Most of the government and institution of Australia is located in Adelide and
therefore Sidney would be preferred since the running of the business will not be interfered
with. Sidney is strategically located on the coast with a lot of consumers for the online food
compared to Adelide (Selvanathan et al., 2011, 2).
Economically, researchers have ranked Sidney as the most integrated with a global economic
power therefore compared to Adelide which was affected by the collapse of State Bank.

Moreover, Adelide has an unemployment rate of 7.4% which may lead to a high crime rate,
and the online business may be at risk of cyber-attacks. On the other hand, statistics show that
the unemployment rate of Sidney is lower at 5.7%. Sidney has created jobs for its citizen and
thus the transportation of the orders and food will be made possible. With the rise of the
tourism sector in Sidney, it will provide the needed target market that will consume the
available food from the restaurants (Selvanathan et al., 2011,22)
Technologically, Sidney has one of the most developed structures and transport in Australia.
The communication system is well developed compared to Adelaide, and if Deliveroo set fits
business on Sidney, it is set to succeed. Socially, the population growth of Adelide is slow
compared to Sidney. On the cultural side, there is an increase in the number of immigrant,
and therefore no specific cultural norms are being followed. However, there is an increase in
lifestyle change, and the consumers are moving towards vegetarian diet thus Deliveroo has to
abide by the changes for the success of the organization. The environment of Sidney is
friendly for business since the tourism and hotel industry is booming. The consumers are thus
increasing. Moreover, with the well-developed communication industry to advertise its
products and services. The catering industry in Sydney is well developed and thus suitable for
conducting. With the innovative ideas in Deliveroo, it can be used for the advantage of the
organization (Yüksel, 2012, 143).
On the legal side, Sidney has some rule that Deliveroo has to follow to the latter. For
instance, the employment of its transporters and workers has to follow the required
guidelines. Moreover, there catering specific rules that they need to work under. Moreover,
Delivaroo will face a lot of competition from other online food companies with similar
services such as Foodoro. Therefore, if the company follows the few regulations needed to
establish a business in Australia, it will succeed in launching its business activities in
Australia.

Competitive environment
The Porter’s five forces gives a deeper understanding of the competitive environment of a
business and allows one to understand where it lies. It helps the company to understand the
current position of the firm and evaluate the strength of the position that a business is
considering to undertake. The forces include the supplier power, the buyer power,
competitive rivalry, threat of substitution and the threat of new entry.
Deliveroo has grown rapidly in just two years owing to its ability to meet the expectations of
their clients. I consider Sydney in Australia to be a more lucrative city for the company to
launch their service there owing to its attractiveness and ability to have enough suppliers on
board to meet the functioning of the firm. The power of supplies arises when a business has
few suppliers to choose from and thus giving them a more bargaining power when it comes to
setting up the cost of products and services. Luckily Deliveroo being an online food delivery
business, it has several pools of suppliers to choose from. They will always have control over
the cost switching by their suppliers and are also able to meet the uniqueness that their
customers require to satisfy their need. They have also teamed up with the most majestic
merchants who are recognized internationally which allows them to have a constant supply of
the products that are most wanted by the clients (Porter, 1979)
The buyers’ power is also one of the Porter’s forces that determines the competitive
environment of a business. Deliveroo is well known locally and internationally and thus it
only requires to be publicized a bit in Sydney to join the market. Sydney has a huge
population with clients of varying needs that Deliveroo can utilize to make even more profits.

The power of buyers as a force id dependent on how many buyers are willing to purchase a
commodity from your company rather than from the other businesses. The prices of the
products supplied by Deliveroo has constantly been affordable although a slight drop will
attract more customers and prevent them from switching to other companies. Few powerful
buyers in your midst have the capacity to influence the cost at which they want the products
or services sold to them and also they have the ability to dictate the terms of service to you.
The scenario is quite different in Sydney owing to the huge population available with
dynamic tastes and preferences and thus, this allows the business to have exclusive rights to
dictate the prices and the terms of service.
Competitive rivalry is another force. Here Deliveroo should analyse the number of
competitors and their capabilities. Too many competitors with attractive products could easily
limit the competitive power of the business as buyers and suppliers opt to go elsewhere.
There are no much takeaway food delivery companies in Sydney thus Deliveroo will have a
tremendous strength in this city because they offer a variety of products that are more
attractive and which aims to meet the unique needs of the dynamic buyers and suppliers. The
company has been known to maintain their buyers and suppliers by giving them favourable
services and products.
Porter also talked about the threat of substitution as being one of the key determinants of the
competitive environment. This is affected by the ability of your buyers to find an alternative
solution to the type of services that you provide. For instance, people, might opt to just to
walk into the restaurant and order their food rather than wait for your firm to deliver it. This
is a challenge that Deliveroo will have to face since there are many high-class restaurants in
Sydney but the market for the takeaway food delivery is still large in the city and thus the
company will still have a large market for their products and services.

Lastly, threat of new entry is also a key determinant in the position that a business holds. The
power s affected by the ability of new firms entering your market. This happens especially
when the cost of entering the market is less or the economies of scale are few. The
competitors can easily enter your market and weaken your competitive advantage. Sydney
has some regulations that each business has to follow in order to be operational in the city.
This forms strong and durable barriers to entry by other competitors into the market and thus
Deliveroo has the ability to cut a bigger market share and put itself into a more favourable
position to run smoothly. The company also has strong technologies with full of protection
and thus it is difficult for the new comers to gain the competitive advantage that Deliveroo
will enjoy in Sydney (Porter, 1979)
SWOT Analysis
SWOT is an acronym that stands for strengths, opportunities, weaknesses and threats. It is
used to identify a company’s strengths and opportunities and take advantage of it and also be
able to evade weaknesses and threats. Strengths and weaknesses are mostly from within an
organisation while the threats and opportunities are from outside the organisation.
Deliveroo is an online company in the UK and is spread across various cities.
Strengths
Deliveroo services are available 24/7, this makes the service available to all at whatever time
of the day. How many times do you get home and get unplanned guests? No need to worry,
keep calm and have Deliveroo work it out for you. We are able to deliver food at your home
within 1 hour of order however the time is highly dependent on the location you are in. Been
out drinking? No one is in the mood to prepare breakfast we bring it at your doorstep just the
way you like it.

We have loyal customers; our pizza is the best in town. The loyalty in them is so profound
that they do not ask any other company for pizza apart from us. Thanks to the great and
highly qualified chefs back at the kitchens. The customers help us have a flow and continuous
flow of orders we rarely have peak and low seasons. Each month’s earnings just keep on
going up, thanks to our customers who are doing a great job in advertising us to their friends.
Weaknesses
Every great thing has a fault. The IT department is often under a lot of pressure. The system
does crash from time to time, on such days we lose millions of shillings since we have no
orders. We end up losing a lot of food and some customers. Not everyone will understand
that system failure occurs, customers become frustrated and end up leaving us.
Technology is improving day by day; we need to have the application in smartphones. People
have smartphones and they help them to operate various stuff on their phones. Why should
they not have the application on the phones? The IT department is working on this to ensure
it is in the play store for android and iTunes for iPhone by the end of the year.
We as a company need to keep on researching on what is going in the market. Other online
companies are a competition we have to always be at per with them.
Your staff may be a weakness especially the ones who deliver food. Encourage them to have
good communication skills and treat customers well since being impolite may make you lose
some of your customers.
Suppliers may let you down, some days they may fail to deliver the needed ingredients to
make a certain meal. This makes the customers disappointed especially if it is a meal that is
enjoyed by many people.
Opportunities

This is external, use what is offered or any opportunity that presents itself. An example if
delivering food to a party in-cooperate your offers in it. Give some discount and use it as a
way to market yourself as a company.
Food is taken with a beverage, add drinks to your menu. Let the customers also order for
drinks it will also help in improving productivity and returns of the company.
Take advantage of the trends and include salads and dressings. Make that simple, tasty and
attractive dressing that makes customers come back for more.
Threats
Political unrest is a threat in the company. In case of political unrest, you cannot risk and put
your employees at risk to deliver food, the food will be spoilt and will lead to a considerable
amount of loses.
There are other online food companies, they are a great threat. Each of it strive to outweigh
the other and win customers. We have to be on toes and try to be the best among them all.
Trends have changed, you do not expect to cook meat the same way our ancestors did. We
need to keep on with the moving trends and fashion. Be able to try new things and recipes.
Surprise your customers, do not let them know what to expect always break the monotony.
Serve and pack foods uniquely and attractively (Hill and Westbrook, 1997)

References
Hill, T. and Westbrook, R., 1997. SWOT analysis: it's time for a product recall. Long range
planning.
Silverman, D., 1971. The theory of organisations: a sociological framework. Basic Books.
Yüksel, I. (2012). Developing a multi-criteria decision-making model for PESTEL analysis.
International Journal of Business and Management, 7(24), 52.
Selvanathan, S., Selvanathan, S., & Keller, G. (2011). Business Statistics-Abridged-Australia
and New Zealand. Cengage Learning.
Porter, M.E., 1979. How competitive forces shape strategy.