Analysis of Deliveroo's Global Business Environment and Strategy

This report analyzes the global business environment, using Deliveroo as a case study. It examines the key factors driving global commerce and trade, including cost, market, environment, and competition. The report delves into the influences of globalization on Deliveroo's organizational governance, leadership, structure, culture, and functions. It also evaluates the impact of ethical and sustainable globalization on organizational functions. Furthermore, the report explores the strategic challenges Deliveroo faces, such as international company structure, foreign laws, international accounting, and universal payment methods, and discusses risk and diversification strategies and supply chain flows. Finally, the report determines various routes to internationalization and identifies key barriers to international business.

GLOBAL BUSINESS
ENVIRONMENT

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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P.1. Analyse the key factors of cost, market, environment and competition that Drive global
commerce and trade for..........................................................................................................2
M.1 Impact that key factors have upon the global business environment in terms of benefits
and challenges........................................................................................................................4
TASK 2............................................................................................................................................5
P.2. Explain the complexity of strategic challenges faced by Deliveroo organisations when
operating in a global environment supported by specific example........................................5
M.2. Critically analyses of strategic challenges in context of risk and diversification strategies
and the supply chain flow.......................................................................................................6
TASK 3............................................................................................................................................7
P.3. Evaluate the influences of globalisation on organisation governance and leadership
structure, culture and functions..............................................................................................7
M.,3. Critically evaluate global market influences in application to appropriate theories and
model relating to structure and culture...................................................................................7
P.4. Evaluate the influences of ethical and sustainable globalisation on organisational function
................................................................................................................................................8
TASK 4............................................................................................................................................9
P.5. Evaluate the different ways of decision making can work effectively in a global context
................................................................................................................................................9
P.6. Determine and articulate the various routes to internationalization an organisation may
adopt, including key barriers................................................................................................10
M4.Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome.................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
In this documentation, this assignment defines about the key factors of the business such as
cost, market, environment and competitors that drive global commerce and trade in the industry
sufficiently. Apart from it, this study also refer to influences of globalisation on Deliveroo
organisational governance and leadership structure in the industry in proper form. Beside from
it, the assignment also describes about influences of ethical and sustainable globalisation on
organisational function of the business in global business environment properly. Moreover, this
assignment also refer to the different types of routes to internationalization of Deliveroo
company which must be adopted by the firm in its internationalisation strategy in respect to
getting sustainable growth in the industry appropriately.
TASK 1
P.1. Analyse the key factors of cost, market, environment and competition that Drive global
commerce and trade for
Introduction of the company: Deliveroo is a British online ford delivery company
founded in 2013 by American Will Shu and Greg Orlowski, the company is based on London
and the organisation is furnishing its existing products and services in a hundred cities
effectively. The company is furnishing its services in European countries such as Germany,
France, Belgium, Ireland, Australia, Singapore, Unite Arad and Hong Kong etc. the company
have major work for provision of online food ordering in the nation properly (Caiazza, Shimizu
and Yoshikawa, Hamilton and Webster, 2015). The company gets its orders by organisation app
and its official website from its customers sufficiently. In the fastest growing business industry,
Deliveroo Company is also delivering its food services by its self-employees, bicycle or
motorcycle in these countries at various region efficiently. The business is working with some of
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the biggest chain restaurant across the UK effectively. It has large numbers of employees who
are furnishing effective company services in various markets of the UK properly.
Definition of globalisation: Globalisation defines about the process by which national, reginal
economies, societies and cultural have become integrated through the global trade,
communication, immigration and transportation in the country effectively (Wild, Wild and Han,
2014). There are numbers of effectives are being observed by globalisation in the country by
which the nation is growing fastest in the world efficiently. In has been seen tat, globalisation is
making major focusing on the economic side of the world comfortably. In this context, there are
different type of factors drive global commerce and trade, some of the factors are as follows:
Cost factor: Cost factor also affect the globalisation and trade in the business in effective
form. Economic sale of the UK and scope of product development costs also affects Deliveroo
business in its international and nation business sufficiently. Deliveroo Company is operating in
these countries. They have specific differences regarding costing of the company which
influence on the firm profitability and growth in the market properly.
Market drivers: Different types of market factors are existing in the company which is making
influences on the enterprise in strong manner (Peng, 2016). Variety of peoples are living in the
country effectively and they all have different kinds of teste and needs properly, as per their
preference they demand for different types of foods in the country sufficiently. Apart from it,
Deliveroo organisation also have various types of existing global customers in the nation, which
have different- different types of tests in its food products as, per their demand and needs in the
market, Deliveroo professional need to changes in their business products effectively in order to
gaining proper growth in the industry.
Economic drivers: This drive also affect the relevant changes in the company as per its
economic growth in the country effectively. Varied of economic factors needed to be taken into
account in order to determining of economic growth of the company at global business
environment sufficiently. Deliveroo business is been getting affects by several economic factors
such as government policies, taxation policies of various counties economic scale of the country
also make influence on the business at different level in the country. These economic factors are
making influence in the economic growth of the corporation at global business environment
sufficiently.
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Environmental drivers: Variety of environmental drivers of the company is making great
impact in the business performance at global level. Some critical trade policies and tariff barriers
of the various European countries make major influences on the profitability of the business in
the industry in sufficient form (Laudon and Laudon, 2015). Moreover, some legal norms and
laws making effective on Deliveroo business in order to controlling over its technology transfer
and intellectual property regimes in the country in sufficient form. Deliveroo need to maintain
proper technological standards in its online food services provision sufficiently in order to
gaining proper growth of the company at global level sufficiently.
Competitive drivers: Varied of competitive elements are presented here which is making
great impact in the expansion of Deliveroo business at global business environment properly. In
such countries, variety of online foods services companies are operating in proper way and
creating more competition to the firm in the industry effectively (Botha, Kourie and Snyman,
2014). So, Deliveroo business professionals need to formation of effective parallel competitive
strategy in respect to giving proper competition to its competitors in online food market
efficiently. Beside from it, social media marketing has been making great impact in the
competition level and profitability of the business in the nation sufficiently.
M.1 Impact that key factors have upon the global business environment in terms of benefits and
challenges
There are different type of factors that affects the global business environment, impact of
these factors can be positive and negative. In this context, when in any of the countries the rate of
competition is low, then it becomes favourable enough for the business to compete in effective
manner. Further, price of the commodity also affects the business as it has high impact to make
changes in purchase decision by customers. In situations when price of the products set by firm
is higher when compared with its competitors, then it affects the profitability of the organization.
Apart from this, the taste and preferences of customers differs country to country, global trade
and commerce becomes difficult when the products delivered to customers is not effective
enough to satisfy them, then it affects the firm to grow.
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TASK 2
P.2. Explain the complexity of strategic challenges faced by Deliveroo organisations when
operating in a global environment supported by specific example
This is very essential terms for Deliveroo organisational professionals to understand the
complexities of challenges faced by the company at global competition at global level, which is
crucial for the business in order to gaining critical success in the industry sufficiently. there are
some critical challenges are facing by the company at global food market and the organisational
professionals require identifying those challenges which is faced by the company in direct and
indirect form in the nation efficiently.
International company structure: The company need to establish its proper international
business structure in order to becoming competitive globally in sufficient manner and it is
required that the effective team structure must be formed in its organisational structure which
make efforts to completion of each task of the business in various countries regarding to
provision of its foods product in online platform effectively (Cavusgil, Knight, Riesenberger,
Rammal and Rose, 2014). These activities could assist Deliveroo business in respect to challenge
operating at global market properly. The company has one headquarter in the London, from
which it operates its various business channels in several markets sufficiently. From the various
location in the country, its existing team gets food making and delivering services at various
regions in these countries effectively. Proper organisational structure making influences in the
business growth at global level properly.
Foreign laws and regulations: This is also very vital factor for Deliveroo organisation
professionals need to be consideration in order to gaining comprehensive understanding of the
local laws and regulations governing the country and as per its norms of operating online
organisation in the nation, Deliveroo must follow different-different laws of foreign countries as
per their regulations and norms of doing business in the country efficiently. It has been seen that,
numbers of regulation and law norms of several European countries are making impact in the
profitability and productivity of the business in more relevant form (Luthans and Doh, 2018).
They have different kinds of taxation implications, employment rules and labour laws which
affecting getting job in the nation properly and moreover, they have to set up proper production
and trading standards as per legislation policies of the government in different countries, these all
legal challenges are facing by Deliveroo effectively.
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International accounting reporting system: in case of Deliveroo organisation, they
operated its business function at global level so it faces challenges of complying with the various
accounting and reporting necessity as per different-different types of countries in which they are
providing their online foods products and services efficiently. Moreover, several taxation
policies and compliances is perhaps that most critical factor and different accounting system
could review a challenge to Deliveroo multinational business which is liable for corporation
taxes in foreign countries around the world effectively (Kasemsap, 2015). They need to follow
different types of international accounting reporting system as per various taxation system of the
country effectively. These systems could increase the organisational significant challenges in
these countries in sufficient manner.
Universal payment methods: From the last decades, it has been seen that, there have
been exponential increment of international e-commerce website and has made selling goods
abroad and more affordable for the business and consumers in sufficient format. Nevertheless,
Deliveroo organisational professionals need to find the universal method at online basis, by
which its various foods products might be sell in the company in various level. In case of
Deliveroo on acceptable payment methods and ensuring secure processing must be a central
consideration for business that operate globally effectively. So it could be said that, it is also
crucial challenge for the organisation in order to getting more relevant services in the business in
more relevant form. Accepting well-known global payment process present the best option for
large international business in the market in more relevant form.
M.2. Critically analyses of strategic challenges in context of risk and diversification strategies
and the supply chain flow
There are different type of challenges faced by companies in global environment for risk
and diversification strategies and supply chain. With this respect, one of the main challenge is
related with supply chain in which firm do not have proper support from making the products
reach service users. It is important that all the products that are being developed are reached to
customers in appropriate manner. One key challenges faced in diversification strategies and flow
of supply chain is the language and articulation issue. Due to language barriers, managers unable
to elaborate the process efficiently. Another strategic challenges faced in context with risk and
diversification strategies and supply chain flow is lack of coherence in the strategies. This
ambiguity increase obstruction in the process.
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TASK 3
P.3. Evaluate the influences of globalisation on organisation governance and leadership structure,
culture and functions
Globalisation is being major factor for each organisation in case of business operation
due to the growing interdependence processes in the business in sufficient form. In today’s
world, there are several organisations are being arisen in the country and they have effective
influences of globalisation on organisational governance and leadership structure, culture and
function of the business in relevant manner. Varied of technological advancement in information
technology, removal for national boundaries and other cultural making impact on the
organisational governance and leadership structure of the business in the industry in relevant
form. Governance and leadership practices vary across national and individual organisation in
the UK effectively. The company is getting reflected because of influences of globalisation on its
social values of the company in the industry effectively and also different ownership structure
and various inverse business situation changes in its culture and working condition of the
company in the industry efficiently (Cavusgil and Knight, 2015). The various effective
governance systems and leadership styles are being applied on company that could give proper
response to its operational dictates in relevant form. So it could be said that, various effective
governance policies and the latest approaches of leadership styles in the nation adopting some
essential activities to raise local effectiveness of Deliveroo organisation in online food market
properly. Deliveroo professionals needed to be competitive at global level and it requires that an
effective team structure must be in place to the challenge operating global company in the
industry properly. Globalisation making influence on the performance of the business and
changes in approaches in leading the company in more effective manner in respect to gaining
proper success in the industry sufficiently.
M.,3. Critically evaluate global market influences in application to appropriate theories and
model relating to structure and culture
In the present era of globalisation, businesses and organisations are expanding their business
operations in different countries in order to enhance the productivity and profitability. According
to three stage theory of international expansion, business organisation face negative slope of cost
and barriers in international expansion at first stage. In mid stage resoruce augmentation and
exploitation begins which change the slope to positive. In the third stage again negative slope
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establish which indicates cultural distance, coordination cost of very dispersed markets
expansion into peripheral markets.
Functional structure: In case of functional structure of Deliveroo business, varied of
groups of people based on common expertise and resources in the business in case of completion
of various crucial task in the business in more relevant form (Cook, 2017). The firm is popular
among those organisations where, they have very little food product lines in the market
sufficiently. As per influence of globalisation on Deliveroo company, the organisational structure
of the firm follows functional structure and its employees are distributed in the structure are
according to their departmental function and as per its requirements in the business, they are
working in the company according to this.
P.4. Evaluate the influences of ethical and sustainable globalisation on organisational function
As per ethical norms of the nation, ethics is defined as the moral principles that govern a
person’s behavior of the conduction of an activity at the workplace effectively. This is very
crucial factor for each section of each one’s lives properly. Ethics is an essential aspect in the life
of individuals as well as businesses in the nation efficiently. Ethics in the business defines about
relationship with employees to each other and it makes positive influences on performance of the
business in the industry in more relevant form (Sassen, 2016). However, it constitutes about a set
of social circumstances prescribe moral codes, norms and practices must be in proper manner in
order to conduction of each activities at the workplace in relevant ways. Deliveroo Company
need to behave ethically in order to a company need to introduce its projection and productivity
to its various stakeholders in the company in sufficient manner. There are some key effective
ethical components, which is making great influences on the business function at various terms
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efficiently. So its professional needs have considered all ethical norms in the company in order to
functioning of its all business activities at various countries efficiently. As per ethical issues in
global business, it could be said that, Deliveroo organisational professionals has challenges on its
marketing strategies and safety practices in order to gaining proper development in some of its
section in proper ways. At the workplace, there occurs various sweetshops and labour abuses
which must not be there as ethical norms towards the company, it makes negative influences on
the company’s performance and its various stakeholder’s perception relevantly. Its customers
also create questionable payments which is also prime cause for Deliveroo organisational food
products and services, negotiable prices must be offered by its products towards its customers, so
its customer can deal with its products at satisfactory rate in the market effectively. Apart from it,
its top management also needed to consider the various dimensions of labour conditions at the
workplace properly, it could affect the business performance in the industry in relevant manner.
Such dimensions are, appropriate wages must be provided by company as per its policy standard
in the firm, child labour must not be there at the workplace as per ethical norms of business,
working condition must be in well manner and appropriate resources should be distributed to
their employees in the business effectively (Shenkar, Luo and Chi, 2014). They have official
standard working hours at the workplace, no one employees giving overworking in the company
effectively and employees of the company must be given freedom of association in the company
for working and thinking freely in the firm. Beside from it, globalisation has bought about
greater involvement with ethical considerations and most importantly achieving competitive
advancement through business ethics in the industry in relevant form, so its company can
perform in globalized European market in sufficient form and gain competitive advantage in the
business in relevant form.
TASK 4
P.5. Evaluate the different ways of decision making can work effectively in a global context
From the analysis, it has been stated that, variety of ways are presented here by which
effective decision could be made in relevant manner. Deliveroo company need to make decision
at various stage because of it is operating its business at global level so its various rational and
logical process needed to be considered by its professionals in the business in case of making
proper decision in the firm effectively (Cumming and Zahra, 2016). They have to analyse several
critical current situations of the company and its operational professionals in the market in
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sufficient manner, so it could be said that, they have large numbers of issues are being arisen in
front of the company concerning about to making proper decision about get enough growth in
the firm properly. Decision making process of the company must be in proper manner as per its
requirement in the industry, so sufficient development could be gained effectively.
P.6. Determine and articulate the various routes to internationalization an organisation may
adopt, including key barriers
In case of Deliveroo online foods selling company, there are numbers of routes are
available which could assist the business in order to generating proper position in global complex
internationalisation of the organisation which could be major cause of effective development of
the company. In case of online businesses, it gets easy to understand those routes for the
company by which they could get proper success in international market sufficiently.
Franchise set up: This is also one of the essential routes by which Deliveroo
organisation could get sufficient success in its business at international level in the industry
efficiently. The company need to start up to established attractive franchises of the company in
several countries effectively. As per its requirement in such areas by which sufficient
development could be gained in more relevant form of the services in sufficient manner. It could
be said that, franchise set up is one of the most effective routes of getting internationalization of
the business in global business environment in proper manner. The company professionals has
option to establish attractive franchise and at there, provides variety of foods services as per
regional customers' requirement and changes in test of their foods products according to
demands of its new customers in the industry in relevant manner. So it could be stated that, this
is one of the best approach by which sufficient development could be gained in complex global
business market effectively.
Joint venture: This is also one of the essential routes by which Deliveroo Company
could get sufficient growth in the industry effectively. Varied of food businesses are running in
various European countries properly and they have separated brand name in their regional areas
properly (Gereffi and Fernandez-Stark, 2016). In case of international development of Deliveroo
business, its professionals need to make collaboration with several regional popular foods brands
at various stages appropriately. They can start their new venture by investing its new enterprise
and introducing its several new products and services in the market in more relevant manner.
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From the analysis, it could be said that, they could start their business with establishing new joint
venture in the company effectively and as per its requirement in various countries effectively.
From the analysis, it has been stated that, numbers of companies are being arising in the UK
which is working with collaboratively and furnishing more existing services to its targeted
customers in the market effectively. So, it could be said that, starting a joint venture is one of the
effective action which is needed to be taken by Deliveroo organisation in case of developing its
business activities at various level in the nation sufficiently.
While conducting business globally, business managers could face few obstructions. Though by
formulating precise strategies these challenges can be mitigate. In this context, the challenges
faced by business internationally and mitigation strategies are described below:
Proactive decision marking: This is an effective strategy for Deliveroo organisation
which is being formulated by its professionals before events are happening at the workplace
effectively. In case of operating its business function at global level, its professionals must
consider these methods of making decision towards the business appropriately. Varied of global
advancement opportunities are being arisen quickly at global level and for taking rapid
advantages of them, its professionals must utilise these strategies at the workplace in more
relevant form.
Foresee the issues in the nation which is facing by its peoples in the country in various
form. there are numbers of issues are being arisen in food online product delivering system, so
new technological advancement could influence on working effectively of the business in a
global context in more sufficient manner. Numerous problems are being faced by peoples of
these countries towards getting delivery and payment system of the company.
Determine the alternatives: The Company’s professionals have different types of
alternative option of delivering food online services and towards effective payment system. If it’s
giving more benefits from its previous option, then it could be adopted by its professionals upon
its various production and services provision process efficiently (Carroll and Buchholtz, 2014).
They need to make use of some areas by which sufficient development could be gained in more
relevant form. Proper determination of its alternative option of food delivering services and
effective payment system could increase the sales of the business and also improve the
performance of the business at global context efficiently.
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Evaluate the option: After proper ascertaining of alternative option towards food
delivering system, its professions need to properly evaluate the appropriate option and its
effectiveness on business productivity and profitability after applying on business function
sufficiently. So it is necessary for the firm to have proper evaluation of options effectively.
Choose situational resolutions: Deliveroo organisational professionals needed to be
consider the quick benefits of the company and potential of alternative option which have
potential for meeting demand quickly will hinder the company’s growth plans in the industry in
relevant form. The company can analyse the situational resolutions of the company in the
industry sufficient and as per this process, they need to make decision to implementation of
method as per decision making guidelines, so it could give proper benefits to the company in
proper manner. Beside from it, there are several methods are presented here by which Deliveroo
organisation might use to making its critical decision towards getting competitive advantage in
global context efficiently.
M4.Critically evaluate the key barriers in doing business internationally and make
recommendations on how they can be overcome Language: Businesses often have the urge to use the same language, selling and
payment methods as well as marketing strategies as they do at home. Language and
culture is the first barrier business managers faced while operating globally. It is not
necessary that the natives in country they want to operate in knows English. In order to
overcome this barrier, management needs to conduct extensive research and hire local
personnel who have adequate command on both domestic and international language. Culture: Every country have their own distinctive culture which needs to be comprehend
first before embarking on the business operations. Management needs to analyses the
culture and then formulate strategies in order to enhance business operations in respective
country. The type of preferences that individuals have differs. For example, the type of
products that are provided by McDonald’s, to Australia will be different when compared
with UK. This is because, the preferences of individuals at these place differs.
 Costs: Cost is another challenge which affects global business environment. Management
needs to analyses the cost appropriately before commencing on business activities as
every country have their own currency and exchange rates methods. The rate of
competition is high, there are many companies at other countries that deliver similar type
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of products and services. Customers prefer to make purchases for the products and
services that are available to them at low cost but with high quality. In this context, cited
firm should take appropriate steps in relations with setting up price for the products and
services so that they are able to determine cover the market in appropriate manner.
CONCLUSION
From the above analysis, it could be concluded that, there are some crucial factors such
as cost, market, environment and competition of Deliveroo business could drive the global
commerce and trade of the company sufficiently. Moreover, this assignment also defines about
the complexity and strategic challenges faced by Deliveroo company when operating its business
at global environment efficiently. Apart from it, this study also concludes about influences of
ethical and sustainable globalisation on Deliveroo organisational functions and some crucial
business factors which is needed to be considered by its business professional in order to getting
proper success in global business environment properly.
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