Global Business Environment: Deliveroo's Strategic Challenges & Growth

This report provides a comprehensive analysis of Deliveroo's global business environment, examining the key factors such as cost, market dynamics, competition, and environmental influences that drive global commerce and trade. It delves into the strategic challenges faced by Deliveroo when operating internationally, including cultural differences and entry fees, and evaluates the impact of globalization on organizational governance, leadership, structure, culture, and functions, utilizing models like McKinsey's 7-S framework. Furthermore, the report assesses the influence of ethical and sustainable globalization on Deliveroo's operations and explores various decision-making approaches effective in a global context, identifying routes to internationalization and potential barriers. The analysis incorporates relevant examples to illustrate the complexities and opportunities inherent in Deliveroo's global expansion, offering insights into the company's strategic directions and operational adaptations in response to the evolving global landscape. Desklib provides access to this and many other solved assignments for students.

Global Business
Environment

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Analyse key factors of cost, market, environment and competition that drive global
commerce and trade................................................................................................................1
TASK 2............................................................................................................................................2
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples..............................................................2
CONCLUSION................................................................................................................................3
PART 2............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
TASK 3............................................................................................................................................4
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions..............................................................................................4
An evaluation of how the above has been influenced by global operations & how the business
has been influenced................................................................................................................6
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
................................................................................................................................................7
TASK 4............................................................................................................................................8
P5 Evaluate the different ways decision making can work effectively in a global context.. .8
P6 Determine and articulate the various routes to internationalisation an organisation may
adopt, including key barriers..................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Globalisation is defined as a process of enhancing the business practices on international
level having a potential to interconnect all the organisational operations along with the trade as it
leads to the playing of greater emphasis upon the cultural exchange. It act as the development
key in the production process of goods and services at global level. It plays a vital role in the
growth of global, economy, trade, technology, culture, information and many more (Ado and
Wanjiru 2018). Deliveroo is the selected organisation for this report as it is a fastest growing
food delivery business working on international level. Its headquarter is located in a London,
United Kingdom and it is performing their business operations in more than 12 countries. This
report deal with the PESTLE analysis and the international business driving forces. Along with
this it also include the strategic challenges as well as the impact of digital technology upon
business. At the end, it covers the influence of leadership governments culture and function
along with the combination of ethical and sustainable globalisation upon Deliveroo
MAIN BODY
PART 1
TASK 1
P1 Analyse key factors of cost, market, environment and competition that drive global commerce
and trade.
Globalisation have its own importance in international businesses as it help them in
earning higher profits. It has been found that there are several factors which fosters to the
presence of globalisation in the context of Deliveroo are given below: Cost: It refers to the all expenses which carries a from country to country by focusing on
the attaining higher advantage at international level. It is a found that the cost is providing
a greater opportunity along with the development which help the business organisation on
working at global level. By adopting the cost advantage, the Deliveroo can enjoy the
higher profits. It is necessary to have a skilled leader camera the success of operations of
its business in a country (Ahmed and Alam, 2021). Deliveroo can decrease its cost by
doing shipping in bulk as it leads to the reduction in the cost of delivery agents.
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 Market: This driven focus on providing a lead to the domestic market which offer several
of opportunity is a to the business organisation for the purpose of expanding the business
in international market. In the context of Deliveroo, a manager is capable to achieve the
higher sum of a market share which leads to the assisting the long-term sustainability in
market. Hence it has be found that it is necessary for the business organisation to pay
higher attention on the identification of customers along with the market requirements in
order to satisfying the needs and wants of customers and becoming the best profitable
organisation at global level. Competition: The development of globalisation in the corporate sector leads to the higher
competition in the international market full stop there are several businesses working
under the same industry increase the internationalisation. Deliveroo company is facing
higher competition in the market while doing business operations at international level
(Akhtar and Sushil, 2018).
 Environment: It focus on the environmental forces of an area in which the business
organisation is performing their operations with the purpose of making huge amount of
profits. There are several forms of environmental elements such as political, social, legal,
technological and many more. A manager in Deliveroo company to focus on all the
environmental factors and develop effective Strategies and policies a so that they can
ensure the long-term sustainability and profitability at global level in the competitive
market. It help the organisation in performing operations on international level in an
effective and efficient manner which leads to the earning of huge amount of profit.
TASK 2
P2 Explain the complexity of strategic challenges faced by organisations when operating in a
global environment supported by specific examples.
The concept of globalisation leads to the carrying out its operations with the higher
effectiveness and efficiency e in order to formulating the sound strategies which are related to
beneficial outcomes. Internationalisation is considered as a huge platform where companies from
several countries come and perform the operations related to trade. Handsome there are high
chances of complexity is within the market or trade which a company can face while performing
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its business operations. In the same case of Delivroo, there are several challenges and
complexities are available in the global market. Some of them are discussed below: Loss of cultural identity: While performing business operations globally, the
organization have to deal with the several culture which is a important issue for
organization. Deliveroo is working in several countries. Hence they are required to
identify several of cultures of different countries (Ferraro and Briody, 2017). It is very
difficult task for the organization to understand and adapt the different culture of different
place. It is required for organization to recognize the culture of various country which
assist in the successful running of business operations as well as effective functioning of
working of organization.
 Entry fees: Deliveroo company have to pay several of export related fees along with
franchising collaboration to the several local and international businesses. Deliveroo is
focusing towards the adoption of international development throw new outlets in several
Nations with the objective of gaining higher profits. Deliveroo can also faces several of
strategic challenges in the context of a paying a sum of entry fees to the Government of a
particular country before starting operations in that country. It employs a negative impact
on the profit margins of company along with increasing the operating cost.
CONCLUSION
From the above report it has been concluded that the globalisation aur internationalisation
plays an important role as they provide several opportunities a to the business organisation along
with expansion of their business operations. Globalisation can be defined as the procedure of
exchanging goods and services at international level. There are several factors which are
affecting the the business organisation on global level which are discussed above. Some of key
driving forces which are related to the internationalization affect the business operations as well.
Along with this there are some challenges as well which affect the Global Business and affect the
smooth functioning of operations.
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PART 2
INTRODUCTION
Globalisation refers to the process of establishing professional relationship among the
people organisations and government of several countries at multinational platform. This part of
report deals with the influence of internationalisation upon governance, culture, leadership and
management of Deliveroo. Along with this it also include the application of McKinsey and
Handy's model of culture in respect of organisation which help them in making the effective
decision at workplace. Furthermore it also covers the several entry modes which an organisation
can adopt at the time of starting their business operations at global level with the barriers which
bring hurdles in the smooth functioning of business.
TASK 3
P3 Evaluate the influences of globalisation on organisational governance and leadership,
structure, culture and functions.
The power of globalization on the various element of globalization in relation to
Deliveroo is explained by an significance of the model of McKinsey:
The McKinsey model is explained as a instrument that helps in the design of the
organization. The main goal of using this model from Deliveroo is to be more effective in
achieving the business goals. The utilization of the McKinsey model in the discourse of
Deliveroo are given below: Structure: This represents one way in which a company is highly organized. With regard
to Deliveroo, it is very important to maintain the corporate cognition so that every
employee and every management can exercise their responsibilities and roles more
clearly. The Deliveroo company must have an efficacious structure that is cross-
departmental, which assist to get a decent image of the various departments, particularly
on an global level (Hickmann, 2017). Strategy: It display the business program which was referenced and created with the goal
of a creaseless business process. In the context of Deliveroo, a manager is asked to
centering on achieving a sustainable competitive advantage that will help the company
develop a solid plan of action along with the high profit. This is possible only by doing
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the development of healthy environment or culture within the organization that motivates
employees to effectively implement such a strategy. System: This element present the both technical and the substructure of the organization
that helps keep business running. Regarding Deliveroo, the company places great
emphasis on using advanced technology to have effective operations on an international
scale and is considering the best decision to achieve long-term sustainability. Skill: This encompasses different skills or competencies within a company's employees
that enable employees to effectively achieve their business goal (Jones, Kwansa and Li,
2020). In this regard, a manager at Deliveroo follows all the rules and regulations set out
by employee welfare, which keep every employee satisfied and encourage them to
execute tasks with higher skill and fruitfulness. This helps to achieve higher profits along
with the long-term endurance of the company. Staff- This includes the recruiting, training and retention of highly talented employees in
the company. With regard to Deliveroo, the HR manager has an obligation to focus on
training employees and providing them with adequate salary and incentives so that they
can stay actuated. This will allow the company to achieve long-term sustainability in the
market by offering better services. Style: Under this, a senior manager at Deliveroo is developing a code of conduct that
supports them in decision-making with an effectual assessment of every aspect. In this
context, Deliveroo's management of organisation perform all the business practices with
a democratic management style, so that every member of the organization is given the
opportunity to present their thoughts on business decisions on a global level.
 Shared values: The company's mission, goals, values, etc. are known to be an important
foundation of the organization and play an effectual role in directing the operations of
organisation (Kaynak and Lee, 2018). What is needed in the context of Deliveroo is a
manager who develops a vision and mission that guides the employees of organisation in
order to perform their duties in an effective and appropriate manner on a worldwide
scale.
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An evaluation of how the above has been influenced by global operations & how the business
has been influenced
The market entry of new companies makes the world market necessary. This is not due to
the restriction of the internal market, but due to globalization. This endangers the share of the
domestic market in the world market. Below are the various business drivers that not only
boosting the globalization, but also guide the Deliveroo for the purpose of doing development of
business:
 Political changes:- The way of globalization in the world marketplace will join and
socialize the various communities in order to establish the trade agreement. This gives
rise to the different market opportunities for Deliveroo.
 Development of technology:- This factors entirely affiliated to the evolution of
technology in the organization. This is not only useful in increasing the flow of ideas
within the organisation, but also helps to communicate the content crosswise the
boundaries of the organization (Ortiz and et. al., 2021).
 International businesses climate:- It refers to the another factor which is fully affiliated
to the enlargement of the communication channels which contribute to the process of
globalization. This also provides various tools that facilitate Deliveroo in the
globalization process.
 Expenses:- This factor is not only related to the liberalization of trade but also to the flow
rate of finance in certain region such as improving developing countries, worldwide
consumption habits and demand for social science to sell (Park, 2020).
Application of Hofstede model culture
When an organisation enters in a global market, there are several advertising factors that
influence the customer's decision. With the help of the Hofsteder dimensional culture method,
the influence of the element explained below is determined:
 Power distance:- The culture that has advanced quality spacing has the strong
hierarchies in addition to the strong and powerful leaders. The decision of Deliveroo is
only made by the boss of organisation, but not by doing discussion and teamwork.
 Individualism and community ties:- People around the world can be preferred by
advertising by accenting how the product gives them the benefit of freedom along with
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saving the time and providing reward to the team which are working in an effective and
efficient manner (Razmi, Mehrvar and Hassani, 2020)
 Masculinity and trade role:- High Masculinity Markets can separate the roles as per
their respective culture of market and ensure that the accurate structure is followed for
each product in order to reach the market.
 Tolerance and ambiguity:- these are the cultures that are completely dependent on
allowance and expression and others can avoid this. The Deliverro company determines
its various forms of culture and adapts its advertising action to them.
 Long term orientation:- It not only helps in making the focus on the traditions, but also
helps in examining the connection of the past. Deliveroo company must follow such an
alignment if they want adequate funding for their conventional artifact (Shageeva and et.
al., 2017).
 Indulgence and quick gratification:- The high level of cultural understanding provides
them with value for the rest of their time, and low understanding of culture has rigid
cultural conception and regulations.
P4 Evaluate the influences of ethical and sustainable globalisation on organisational functions.
The ethical factors within globalization denote a process in which information, data,
goods or services, technology and many other things are traded in both a moral and an ethical
manner. The term ethics describes an understanding of what is right and what is in a company.
This represents a broader scope that includes various stakeholders like communities,
governments, employees, suppliers, buyers, etc. The main objective of the ethical factor is to
develop the employees of the company in such a way that they can work towards the
achievement of goals or objectives in an ethical manner. Working with the consideration of
various ethical factors helps the company to achieve a smooth business process and achieve
long-term sustainability, especially on a global level (Shams and et. Al., 2021).
The sustainable factors of globalization denote those determinants that cause companies
to be present on an international level and to achieve a high competitive advantage on a global
level. This increases the profitability of the company so that it can survive in the international
market. On the other hand, this also offers growth and potential to face tough international
market competition. The various factors that contribute to Deliveroo's sustainability include
economies of scale, human resources, and the marketing of products and services. This
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encourages customers and attracts more employees to work with the company. When the highly
talented employees are devoted to both innovation and new marketing strategies, more customers
can be attracted to Deliveroo's services, giving them greater profitability as well as long-term
sustainability.
TASK 4
P5 Evaluate the different ways decision making can work effectively in a global context.
From the report discussed above, it can be seen that making strategic decisions is very
important as this will help Deliveroo diversify its span of control as well as the business,
especially when it comes to a global focus. This enables companies to gain competitive
advantages and high market shares on a global level. By making effective and informed business
decisions in the global Deliveroo context, you can mitigate various external and internal factors
that can negatively impact the business. Both external and internal factors can affect the smooth
running of the business and its profitability (Song and Lee, 2020).
P6 Determine and articulate the various routes to internationalisation an organisation may adopt,
including key barriers.
It is assessed that there are various global expansion methods through which Deliveroo
may be able to achieve its global presence and high competitive advantage. The routes available
with Deliveroo are listed below: Licensing: This denotes a way by which one company grants another company an
agreement or license by which one company conducts business under the name of a
company that has granted a license. This represents a highly effective strategy designed
to help Deliveroo grow its business on a global scale. With regard to Deliveroo, the
organization charges a certain amount in the form of royalties for the use of its name and
services in various country markets. This creates an employment opportunity in the host
country where a licensee operates the business (van Tulder, Verbeke and Piscitello,
2018).
 Exporting: This is defined as a process by which one company exports its manufacture
and services to another party in the overseas market. Export is classified as one of the
best international business routes, as it allows companies to operate direct sales without
setting up a company. This also helps to gain a greater competitive advantage in the
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global market. Regarding Deliveroo, the company can export those items for which it is
making delivery, which would lead to business expansion (Zhou, 2018).
CONCLUSION
From the report discussed above, it can be concluded that a company has a high level of
focus on business improvement by various organizational culture, governance and leadership. It
helps the organisations in successfully achieve business goals and competitive advantage on a
global scale. The report also recognizes various terms that help the company make effective
business decisions by considering factors on a global level. It also helps in collecting the
knowledge related to applying the McKinsey Model to understand the governance, structure, and
culture within the organization that enable a company to keep effectiveness and efficiency at the
time of making business decisions on global level. In addition to this, the above-mentioned
report also includes a detailed analysis of the sustainability as well as the ethics required to be
present on a global scale. There are several ways a company can enter the global market such as
licensing, exporting and many others. Choosing the best route is critical to doing business as it
can affect the global presence and sustainability of organisation in such a market.
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