The objective of this report is to evaluate the influence of Global business environment over the business and practices of Just eat. In this regard, it is required to analyze major strategies that firm can use to minimize impact of such.
- Identify major key factors that can drive globalization.
- Analyze complexities and challenges which are associated with global environmental practices.
- Discuss how to operate in global market can influence organization’s functions, culture and structure of Just eat.
- Evaluate the impact of globalization over the business decision making and strategy of Just eat.
Globalisation is all about exchange of goods or services across the international level in order to acquire maximum return on their investment by satisfying client’s needs or requirements. However, number of small or large organization is emerging at marketplace for gaining high range of return on their investment. Just eat is well known medium size organization by dealing with around 20000 restaurants across the international boundaries for gaining maximum revenue (Cantwell Dunning and Lundan, 2010) . Basically, online service is offering by this association by getting connected in almost 13 countries such as; Europe, Asia, oceanic and Americas. Mainly, it’s a platform for customers where they found best options for food and acquire qualitative items. Therefore, assignment is going to highlight the necessary elements which are considered by firm while expanding their business across distinct global marketplace. For example, number of factors are considered such as; cost, market, competition and so on. Along with this various methods of launching new business at global place is also outlining in this project for assisting company to extent their manufacturing business in various new areas. Apart from this, challenges and barriers are also explained for guiding company towards corrective path so that they can attain their set objectives.
P1 Key factors of cost, market, environment and competition that drive global trade
Globalisation is all about connecting with foreign companies with broader motives as well as trying to establish a positive connection with other nations in order to gain maximum advantageous. However, international marketplace is having numerous of options and alternatives for making successful to an organization by showing best techniques of handling business (Cavusgil and et. al., 2014) . Along with this, ideas are also emerging which aids business entity in grabbing more or more knowledge for establishing their company image at international marketplace. Just eat is already dealing in around 13 nations but dreaming extending their business more so that they get succeeded in maximising their yearly turnover and defeat their competitors with unique strategies. But at the same, it has been understood that company needs to consider some of the major elements while managing each or every aspects because global market is highly different from domestic one. For example; fluctuation in exchange rate on monthly or weekly basis as it may hamper the future contract of an organization, surrounding of place and so on. Thus, some of the essential component which is having major impact on company while involving in global marketplace is discussed as follows:-
Cost: - Capital is seen as most indispensable aspect for every organization either small or large because overall business activities are based on funds. For example; raw materials are purchasing through sufficient amount of capital, labours are also hired on salary basis and so on. Thus, it has been understood that money is consider as lifeblood for overall industry as well as either small or large business. Therefore, company needs to consider relevant elements of cost such as; indirect and direct cost, variable and fixed cost henceforth. Mainly, variable one always fluctuates due to changes in several other factors like consumer bargaining power whereas fixed one is always fixed like rent henceforth (Colfax Rivera and Perez, 2010) . It means, manager of Just eat needs to forecast all the indispensable elements of cost before involving in any kind of contract because all this things are depend upon monetary factors only.
Market:- Just eat is expanding their business for maximizing their profit level by fulfilling the client’s needs or demands but it is only possible if company can appropriately select best market for expansion process. Thus, number of factors are analyse while extension process from which market is one of the mandatory aspect because final users are identified there only. Basically, it’s a part of promoting company goods in best manner by understanding the needs or requirement of customers whosoever are interested in products. However, demand of online services is increasing day by day due to establishment of modern world at marketplace. It means company can easily analyse their current market for attaining set objectives or goals in various manner. Mainly, some of the major element of markets is classified into various sections such as; demographic, behavioural, geographical and psycho-graphic. Different kinds of market shows that company needs to plan all the elements as per current market in order to understand choice or preferences of various types of customers (De Jonge, 2011). For example; old age people prefer hygienic foods whereas kids love to eat unhealthy foods and teenagers are also like to enjoy junk foods henceforth. All these elements show the differences and several elements of market which must be considered by organization while promoting their goods.
Environment: - Business surrounding is having major impact on company performance because all the activities are depend upon external and internal elements. In fact, all the organizational policies are depending upon various components in order to direct employees towards corrective path for attaining set objectives or goals. Some of the essential elements are; external and internal. For instance; political, economic, technology, legal, social, customers, suppliers henceforth. Major influence of these factors is discussed as follows:-
- Political:- According to this element political norms, rules and regulations are influencing having major impact on company performance because it helps in suggesting an organization about current policies which has been changed. However, Just eat need to learn about government stability at particular nation wherever they are going to expand their business. For example;VAT rate, rules and regulations and so on (Ferraro and Briody, 2017) .
- Economy:- Inflation and deflation rate are having major influence on company performance as it enforce them to set their price as per current market situations. Therefore, it may affects the future and current contracts of an association.
- Social:- Final users are seen as most indispensable aspect for organization because products are consumed by them only. It means, association needs to analyse the taste or preferences of society in order to make positive relations with them.
- Legal:- Legitimate bodies was enacted number of laws and orders to prevent buyers and sellers from getting misused. Therefore, Just eat is focussing on national legal norms while involving in business with domestic company of any foreign marketplace.
Competition:- Number of food manufacturing companies are coming with outstanding or qualitative goods for acquiring maximum benefits because consumer demands is maximizing in coming time period. For example Amazon is one of the most leading organization engaged in providing online services to their customers. On the other hand, various small companies are also emerging for maximizing their profit level (Gecevska and et. al., 2010) .
Hence, it has been understood that expansion is not an easy task due to the involvement of numerous elements and all of them are interlinked with each other. Therefore, managers of an organization needs to focus on all the major components while establishing their new venture at global marketplace.