Just Eat Takeaway: Culture, Business Model, and Challenges Report

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This report provides a detailed analysis of the Just Eat Takeaway merger, examining the founding culture of Just Eat and its implications on the merger with Takeaway.com. It explores the business model of the new Just Eat Takeaway.com, highlighting its organizational structure and strategies. The report also identifies the challenges faced by the merged company, including cultural clashes and integration issues, and offers recommendations to facilitate communication and unification between the two organizations. The analysis covers the importance of culture, the impact of market shifts, and the need for adaptability within the competitive online food delivery industry. The report concludes with a comprehensive overview of the merger's impact and future prospects, offering insights into its market valuation, operational strategies, and potential for growth.
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PORTFOLIO OF JUSTEAT-TAKEAWAY MERGER
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Table of Contents
Just-Eat founding culture and potential implication with takeaway.com.............3
Business model of new Just-Eat takeaway.com...................................................5
Challenges of new merge company Just-Eattakeaway.com.................................7
Recommendation to facilitate communication and a feeling of unification
between the two organizations..............................................................................9
Conclusion..........................................................................................................10
Reference list......................................................................................................11
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Introduction
Just eat limited is a Uk based company that delivers food service by taking the online orders
founded in 2001, Kolding, Denmark. Recently , this online food delivery company merged
with takeaway.com. Which is also an online food delivery company that is also a British
company; it also gives service throughout 14 countries of Asia, Europe, America and also
Oceania. People, throughout these countries, order their favorites dishes from the reputed
restaurant by using the digital platform of just eat and takeaway.
Just-Eat founding culture and potential implication with takeaway.com
In this digital era, online delivery companies like just eat also enable online order and
deliver the foods from the restaurant according to the customer’s choice. Importance of the
culture of the Just Eat Company is very essential for success. Culture is a behavior of a
group in a specific point in time, place. Culture explains the value of the people, their beliefs
and the perspective of the people. To make a decision about an organization’s culture is very
important. Culture helps to make a decision for the investment why and where to invest as
per their interest. If the culture of a company is bad then the percentage of getting success is
less, and good culture also helps the strong foundation of a company to get success. Every
business has its own culture that allows it to thrive and thrive in the face of growing
competition.
The success of Just Eats is mainly owing to its distinct culture. The organization has a
culture that employees have adopted over time. The organization believes in being
determined and passionate about what they are doing. In the culture of an organization,
passion and determination are essential. The company's management has a strong vision and
optimism, which helps to foster a positive culture. The organization is mission-driven, and
all of the employees are dedicated to the organization's success. Entire team works with
energy and desire to assure that the company's objectives are achievable. Even from the
beginning, the organization creates a culture that encourages all of its employees. The
company's leaders have a strong purpose and direction that aids in achieving its objectives.
By encouraging women and people from underrepresented backgrounds to pursue jobs in
technology, the organization has created an inclusive atmosphere. Just Eat also had four
essential aspects that aided in the development of a strong culture: strength, inspiration,
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awareness, and knowledge. The managers make an appearance energized and motivated to
motivate their employees, and they have the compassion to manage a diverse workforce
while assuring that data is efficiently shared and visibility is accepted. All of the company's
performance is based on ethics and integrity. Employees are encouraged to work together as
a team, which promotes synergy. All staff is encouraged by togetherness, which encourages
them to accept one another and support one another grow. The company has made certain
that personnel are kept up to date on their own and the overall performance of the company.
To foster a culture of transparency, the organization uses a color coding system on critical
performance data.
The company makes sure that customers have a positive experience. Customers are a
primary concern for the organization, and their demands are a main priority as well.
Excellent communications systems and timely replies to client complaints improve customer
satisfaction. Just Eats' objective is to enable customers to enjoy their takeaway food service
experience. The company's culture is built around fostering a real customer-centric
environment. The corporation does everything it can to ensure that the customer is at the
forefront of everyone's mind. Customers are treated with compassion and loyalty by the
organization, which responds to their concerns and uses appropriate language while
communicating with them. When food is delayed by 5 minutes, for example, the corporation
takes action. The business is aware of the customer's habits, interests, and time constraints.
The merging of Takeaway.com with Just Eat creates one of the largest online food delivery
companies. Just Eats' market valuation was £5 billion at the time of the merger, but at
current market prices, the company is worth more than £10 billion. The C.E.O of Just way
company believes that the merger with the takeaway company should create more
opportunities for the best marketing strategy and the resources. The company likes just eat
and takeaway , their merger should build a powerful positioning as the largest food delivery
company in the world and also get the maximum resources and the strength to its
competitor. The merger of these two large companies is also helpful for reducing the cost
efficiency so that the company might get maximum profit. Despite a boom in consumer
orders, the company's losses increased due to the merger's costs. Losses increased from €27
million to €158 million in the first quarter of 2019. The combination will enable the
company to expand, consolidate, and improve its resources and skills. Growing market
share, efficiency gains in terms of cost reductions, and productivity will help these two
merged companies. It also aids in improving revenues for research and innovation as well as
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reducing the competitive market. The deal will aid the company in overcoming stiff strong
competition from food delivery companies such as Uber EATS
Business model of new Just-Eat takeaway.com
Organizational structure describes the proper strategy about the job, how it is organized and
the procedure. Decisions about task specialization, breadth of control, chain of command,
departmentalization formation, centralization, and decentralization are aided by the design
of organizations. From a historical perspective, businesses were organized around
bureaucratic systems with hierarchical structures, with a focus on production
standardization.
With respect to the (Duggan and Sherman, 2019) Organizations were deterministic, with
consensus decision, a formal authority and responsibility, and rigorous norms and protocols.
A research paradigm is claimed for the growth of management responsibilities. According
to the contingency period, companies should be organized based on their size, function, and
technology. In order to stay competitive, businesses must both utilize and investigate
information.
A modern predicament arose as organizations continued to evolve. Rapid changes and rising
competitiveness were present in this environment. It is necessary to the organization’s
adaptation to the new environment and acceptance of innovation, which has become a
fundamental strategy. The formalized frameworks were shown to have limits and that it
would prevent companies from achieving their full potential. Organizations chose more
flexible, flatter structures with less complexity and more collaboration and interconnection.
Networks and virtual organizations are examples of newer and better structures.
Organization's strategy goals such as productivity, adaption, and development are prioritized
in the post-contingency period. (Ahmed et al, 2017) Versatility and strategic flexibility were
introduced.
In January, 2020, by merging between the just eat and takeaway.com, a new company will
be created by the name of just eat takeaway.com, thus they will become the world's most
successful delivery company. Just eat limited is a Uk based company that delivers food
service by taking the online orders founded in 2001, Kolding, Denmark. Recently, this
online food delivery company merged with takeaway.com. Which is also an online food
delivery company that is also a British company; it also gives service throughout 14
countries of Asia, Europe, America and also Oceania. As new market shifts and
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competitiveness shaped the company's structure, it developed. "One company, one brand,
and one IT platform," Just Eat Takeaway.com thinks. The approach of "one company" leads
to enhanced productivity. Across the continents, the organization has implemented best
practices such as synchronized roll-out projects, centralized activities, a single technological
platform, and consistent brand marketing. The company's strong network helps to attract
people so that they might get success within the competitive market. The strong network
also helps the company to get more orders and get access to more restaurants without any
issue so that they might get maximum orders and be more accessible for the consumer. This
company has more than 53 thousand and 20 thousand active consumers, 160.1 million
orders, and 14.1 million orders/ returning active customers. The company gets the maximum
profitability and growth of the market valuation by the help of the company's network.
The company assures a proper and clear strategy for the growth of an organization. Their
main focus is on leadership and market strategy and also it aims at maintaining and
extending high market share, increasing profitability, developing technological platforms
and phone applications, and sustaining focused portfolio management. The corporation
continues to operate under a centralized model, with top executives making all decisions.
This methodology appears to be outdated, and the business should pursue a more
decentralized approach to including people in decision-making. The companies began with a
centralized model, compared to existing companies, where decisions are being made by the
leaders. As businesses grew and the economic environment became more complicated, they
realised they needed to be even more dynamic and adaptive, which led to the development
of a decentralized economy. Over time, employee engagement has grown. Employees are
participating in the decision-making process in a meaningful way. Because these merging
organizations operate in such a fast-paced environment, they should be more decentralized.
The company employs a hybrid method in which eateries handle their own delivery while
also providing logistics support. Customers can place orders through the newly launched
communication networks, such as Smartphone platforms and the company's website. The
majority of the company's earnings come from commissions on food orders placed through
its website, as well as digital payment systems (Just Eat Takeaway.com, 2020). Receiving
orders, cooking the food, and delivering it to clients are all part of the company's procedure.
Consumers first look for whatever they want on the company's website, then place an order
and pay for it, after which they get the food. The company caters to customers who would
like to place takeaway orders. Local restaurants and cafes seeking to attract more customers
outside established mechanisms via takeaway Simplicity, efficiency, and personalization are
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all part of the company's business model. The company's architecture adopted a developing
and updating, allowing it to prosper in a fast-paced, competitive atmosphere.
Challenges of new merge company Just-Eattakeaway.com
Mergers fail 83 percent of the time, according to a KPMG report. Mergers face a number of
obstacles that put their survival in jeopardy. Because of the large sums of money invested, as
well as the problems of merge organization and the various nature of human resources,
mergers can be difficult. Mergers can be a quick way to achieve big strategic goals, but if not
managed correctly, they also can result in strategic errors. Because the merging of Just Eat
and Takeaway is a cross-border merger, the company is likely to face cultural class issues.
The business will have to cope with cross-cultural management problems. Interacting with
people in various origins necessitates a thorough awareness of their cultures as well as how to
cope with each individual's characteristics. Thoughts, mutual interests, and preconceptions
about the significance, behaviors, and actions in an organization are all part of the culture.
Because employees' cultures may vary, a merging company might not always maintain the
preceding organization's culture. It's possible that the two organizations have cultural
differences. Methodological approaches, leadership characteristics, and the manner in which
daily tasks are performed may vary. Enabling one corporate policy to take over could result
in massive declines in employee engagement, resulting in massive losses. The companies
may have opposing values and be hesitant to collaborate. Understanding cultural diversity is
critical, as is employing an impartial environment that considers everybody in the company.
Because of the effort required to comprehend the various features of the several companies,
the merger may enhance the firm's complication. Companies will encounter volatility during
the transitional phase, and integration may take a lot of time to develop. Consumers,
particularly if an organization they admire merges with an organization they despise, could
have negative perceptions about the merger. For example, committed Just Eats consumers
may be unhappy with the merger because they believe that quality of the product would
suffer as a result of the merger, and that customer support will suffer as a result of personnel
changes. Financial challenges may arise as a result of the merger, particularly in obtaining an
accurate assessment for each of the companies. Just as Amazon's merging including whole
foodstuffs ran into issues, the combination of Just Eats and Takeaway could run into issues
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with cultural barriers. Staff faces challenges, with some crying at work, performance
measures being used to penalize and cancel agreements, and the majority of workers being
forced to join the union.
It's possible that concerns with employee engagement will occur. It may be difficult for the
organization to engage in a transparent and acceptable manner. People from diverse cultures
speak different languages, and some may get angered if the proper communication methods
are not followed. If communication breaks down, staff may build a sense of insecurity.
Employees frequently have concerns regarding the safety of their jobs, remuneration
packages, and responsibilities in the new company following a merger. To reduce excessive
mobility and worker unhappiness, management should establish clear communication
channels and guarantee that any doubts are resolved.
At the time of merge, an organization with a different company may arise some challenges to
build a proper team to continue the process. It may take a long time to build the employee
management and proper strategy to produce best quality service to the customers and the
restaurant chain they want to register. At the beginning it is time consuming to create a
friendly zone among the employers of the just eat and takeaway. So, they need a lot of
discussion among the employers to make a suitable work zone. Choosing responsibilities for
who will do what and what will be required is a time-consuming process that demands a lot
of discipline and effort. Furthermore, when two organizations merge, redundancy may occur,
and managing redundancies while balancing retention initiatives can be difficult. It takes a
protracted process to verify there is no redundancy and a thorough examination to guarantee
that the impacted employees are fairly paid. Before the merger, each company had its own
list of policies. Following all of the regulations and practices for the multiple companies has
gotten difficult since the companies merged. Before the merger, each company had its own
set of policies and procedures. Following all of the regulations and practices for the multiple
organizations has gotten difficult since the companies amalgamated. The new business must
establish new policies to guide its operations. Determining which rules and procedures to
follow, as well as employee compatibility, becomes a major difficulty that necessitates
extensive discussion.
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Recommendation to facilitate communication and a feeling of unification
between the two organizations
Communication is a fundamental issue for merged companies. People and organizations are
left in the dark when a company merges, causing confusion and dread. Lack of information
prevents management from delivering answers to employees' inquiries, producing frustration
and a lack of faith, as well as lowering employee engagement. Uncertainty in the business
can result in the degradation of participation due to a lack of better coordination. Workers'
ability to cope effectively will improve as a result of an excellent communication approach,
and efficiency will rise as a result. By achieving the predicted synergies and strategic fit,
good communication will improve the organizational value and generate a competitive edge.
HR is responsible for facilitating communications and fostering a sense of unity between the
organizations.
Hr of the organization must schedule a conference where employers should express their
opinion and statement according to the hr interaction. Meeting may help the employers
about their work performance and the understanding. Regular interaction should help the
employer's bonding. Hr may use several pathways for the communication among the
employers, with the help of social media, email. Hr always updates the information about
the changes in the organization among the workers so that each employer gets updated from
time to time as per the organization's information. As a merged company , they need to give
permission to the employees so that they should express their opinions without any
hesitation. This method must help an organization to get success.
To develop better communication skills that help the organization, HR must organize the
training program for the betterment of the communication.
Employees that are well-versed in a variety of communication methods are far less inclined
to conflict with one another. Workers must be taught how to read nonverbal indications and
how to deal with problems that develop while working together.
HR must create continuing interaction to foster cohesion and help to better understand the
merging industry's different approach as well as their roles in its achievement. Most workers
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would be unhappy or apprehensive about the shift as a result of the merger, thus HR must
make sure that communications are kept open.
HR should improve the communication strategy by paying attention to the new business's
coherent understanding, the structure and status of the management concepts, and the
general timelines for planning. To eliminate employee confusion and instill respect, HR
should make genuine and appropriate notifications of major decisions.
HR may support bottom-up and bilateral communication as well as top-down interaction.
Interaction from management to the employees is considered as the top engagement. It
enables managers to respond to their strategy to their workforce. Topmost interaction, or
interaction that moves from employees to managers, is indeed very significant. Provided
with an opportunity to express their thoughts and opinions to leadership
The term "bilateral communication" refers to the interaction between coworkers. Individuals
from the two companies come from a variety of cultures, working settings, management
styles, and cultural perceptions. These personnel must work together despite their flaws.
Conclusion
At the end of this assignment, it can be concluded that Just way is a online food supplier of a
Uk based company merged with another Uk based company takeaway. In January, 2020, by
merging between the just eat and takeaway.com, a new company will be created by the name
of just eat takeaway.com, thus they will become the world's most successful delivery
company. Mergers can be a quick way to achieve big strategic goals, but if not managed
correctly, they also can result in strategic errors. Because the merging of Just Eat and
Takeaway is a cross-border merger, the company is likely to face cultural class issues. The
business will have to cope with cross-cultural management problems. Interacting with people
in various origins necessitates a thorough awareness of their cultures as well as how to cope
with each individual's characteristics. Thoughts, mutual interests, and preconceptions about
the significance, behaviors, and actions in an organization are all part of the culture.
10
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Reference list
Journals
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PRACTICES IN THE SUSTAINABILITY OF THE HUMAN RESOURCES
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Firm Performance: Mediating Role of Information Communication Technology (ICT).
Pakistan Journal of Social Sciences (PJSS), 39(4).
Angelucci, S., 2020. Exploring different types of Multiple Job Holding through the Gig
Economy: their Push and Pull factors (Master's thesis, University of Twente).
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algorithmic constraints in the gig economy. The International Journal of Human Resource
Management, pp.1-31.
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algorithm-driven platform economy: an exploratory study on the role of key actors in the
food delivery sector (Master's thesis).
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Munir, A.K.M., 2017. Response in mass casualty incidents: survival of selected tertiary level
hospital in Bangladesh (Doctoral dissertation, BARC University).
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Sayyed, I.A., 2020. THE ROLE OF ORGANIZATIONAL CULTURE AND MODERN
HRM TECHNIQUES ON TRAINEES SUCCESS FROM STAND ALONEFINE
DININGRESTAURANTS IN PUNE.
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pandemic: The case of Foodora/Lieferando. Work Organisation, Labour & Globalisation,
15(1), pp.69-84.
Sherman, U.P. and Morley, M.J., 2020. What do we measure and how do we elicit it? The
case for the use of repertory grid technique in multi-party psychological contract research.
European Journal of Work and Organizational Psychology, 29(2), pp.230-242.
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