Deliveroo Organisational Structure Assignment help

Program	Diploma in Business
Unit Number and Title	Deliveroo Organisational Structure
QFC Level	Level 5

Introduction

This Deliveroo organisational structure assignment is about Deliveroo which is an online food delivery industry having its operations in many countries. This company has recently secured expansions and further this company is looking for more expansions. This company is such a faster growing company so this company wants to expand its business through entering into a new city and wants to internationalise its business. In present situation company has its markets in twelve countries but company wants to a fast return on its investment and so a brief research has been conducted in this report to identify the city in which Deliveroo can establish its market so that it can develop more opportunities for itself as well can successfully implement its expansion plans so that Deliveroo could find the right city for establishing its market along with this the competitive environment of Deliveroo which company faces is explained in this report.

Organisational structure

Organisational structure of any organisation defines the management of activities that how the tasks are allocated, how coordination is established, how supervision is conducted. An organisation structure refers to the hierarchy of an organization for determination of roles, responsibilities and power of all the people who are the part of management so that their individual efforts can be integrated into group efforts for achievement of organisational goals. The structure of the organization plays a major role in the success of the organisation.

Types of organisational structures available to Deliveroo

Line organisational structure: In this type of organisational structure there is a direct and vertical relationship between different levels of an organisation. There is a proper chain followed in this type of organisational structure for achievement of organisational objectives. This structure clearly defines the responsibilities, roles, responsibilities and authorities of various levels of organisation. The accountability of relationship is easy to understand in line organisation structure and this also promotes faster decision making in the organisation. There is a closeness established in the employees of the organisation where line structure is established (Rafael, 2013).

                 Line organisational structure

Matrix organisational structure: This type of organisational structure is the hierarchy of the management is set in horizontal division and relationships among different level of the organisation are established accordingly. In matrix organisational structure management structure is designed in such a way so that specific organisational objectives can be achieved from different areas of the organisation. The decision making is decentralised in this structure. This type of organisational structure enhances flexible use of resources as well as efficient and effective use of support system. This organisational structure is useful for growing organisations as this structure decentralises the decision power and establishes proper coordination in each level of the organisation. Matrix organisational structure is useful for those types of organisations which changes rapidly as per the changes in the external environment of the organisation (Kim, 2016).

                      Matrix organisational structure

Most effective structure available to Deliveroo in reference to management theory

The most effective structure available to Deliveroo in reference to management theory of Fayol’s principles of management that is known as the administrative theory of management is Matrix Organisational structure as Deliveroo is one of the fastest growing start-ups of the world Matrix organisational structure will help Deliveroo to respond to the rapidly changing environment along this Deliveroo is tend to increase the number of employees because of the expansions so the organisational structure will be designed using teams in Deliveroo so proper division of work can be established as per administrative theory of management and employees will be divided in those teams and each team will be having specialists for better decision making in the team and matrix organisational structure will help Deliveroo for better coordination and proper functions of management such as planning, controlling, organising, training, commanding and coordinating as described by administrative theory of management (V & I, 2015).

General external environment

• PEST analysis: Pest analysis is conducted with a view to determine the political, economic, social and technological factors that affects a business. Any business decision making  cannot run in isolation so there are various external factors affecting the growth of the business so PEST analysis is conducted to identify those factors in the external environment of the organisation. PEST analysis is business tool which is used for understanding the market growth or decline for business and strategic planning (V, 2014).
• PEST analysis of Manchester from UK: Manchester is a major city in England and second most populated area of UK and economy of Manchester is a fastest growing economy and recently Manchester has developed the manufacturing and production of this city so much that the foreign investments of this city has increased in recent years and entering the market of Manchester will increase the business opportunities for Deliveroo. The PEST analysis of Manchester is as follows

Political Factors (P) Multiparty System Politically Stable Flexibility of Constitution	Economic Factors (E) Mixed economy Intervention of Government in market Increased Foreign investments
Social Factors (S) Free public services Large population Good standard of living of people	Technological Factors (T) Innovative skills Expertise in the field of technology Expertise in the field of Science and IT.

PEST analysis of Marseille from France: Marseille is the second city after Paris with the highest population in France. It is also the second largest city of France after Paris and also Marseille is the city which is third largest metropolitan area in France after Paris and Lyon. In recent years this city has increased growth in service and manufacturing areas. The economy of this city is turning to a high tech technology economy and as well as the city is developing with a rapid growth. Entering the marketing management of Marseille will increase the business opportunities for Deliveroo as well as Marseille too. The PEST analysis of Marseille is as follows.

Political Factors (P) Lack of wise leaders Tight administrative control Failure of French revolution	Economic Factors (E) Government intervention in banking and finance sector Greater rate of unemployment Large networks of railways and roads
Social Factors (S) Disparity of social class Global issues such as most of the time the workers are on strike Racial violence	Technological Factors (T) Leader in technology expert Focus on research budgets Technological supremacy in the world

Impact of PEST factor if Deliveroo chooses to enter the market of Manchester

Deliveroo is a British food company which is engaged in online delivery of foods door to door. Deliveroo is one of the fastest growing start up’s in this world as the business of Deliveroo is expanding day by day and this company operates into more than 12 countries of this world so now Deliveroo is having some expansion plans to enter some new country so the PEST analysis of Manchester was conducted so the impact of PEST analysis which will be faced by Deliveroo too if it enters the market of Manchester will be as follows. There is a multiparty political system in Manchester so the business of Deliveroo will get affected by this multiparty system of UK. The benefit which Deliveroo will get is that the company will be able to get political stability and the most important factor is that Manchester has flexibility of constitution so that Deliveroo will be able to run its business easily in Manchester (Soliman, et.al, 2010).

The economy of Manchester is mixed economy so there will be little bit interfenece of government as well as Deliveroo will be able to run its own policies too and Deliveroo will also get benefitted by the increased foreign direct investments of Manchester as the market of Deliveroo will increase more opportunities will be there. Manchester is one of the largest populated areas of UK so Deliveroo will be benefitted by this largest population as the increased number of people will use the services of Deliveroo this will automatically result into generating revenues of Deliveroo another best thing about Manchester is that people of Manchester are having good standard of living so they will be more interested in using the online food services of Deliveroo this will increase the business of company and various public servies are also free in Manchester.

Technological factors of Manchester will also affect the business of Deliveroo as Manchester is having expertise in the field of Science, IT and technology so this will enable to company to use more updated technology in the products and services of Deliveroo which will automatically attract customers for Deliveroo as well as technology driven approach will increase the business opportunities for the company and will lead to the growth of Deliveroo.

Impact of PEST factor if Deliveroo chooses to enter the market of Marseille

Another option for Deliveroo is to enter the market of Marseille which is one of the growing city of France so for consideration of entering the market of Marseille a PEST analysis of Marseille is conducted to evaluate the factors that are affecting the business of Marseille. The impact of those factors if Deliveroo enters the market of Marseille will be as follows. There is a lack of wise leaders in Marseille and the political system of Marseille is not much strong so this can create a hurdle in the growth of the business of online food delivery of Deliveroo in Marseille and even the administrative system of Marseille is so tight that following the plans and policies of Marseille is not an easy task and that may be difficult for Deliveroo to survive under the tight administrative control and failure of French revolution can also cause failure to the growth opportunities for Deliveroo in Marseille.

Deliveroo can be benefited by the number of employees for entering into the market of Marseille as there is a greater rate of unemployment in Marseille so Deliveroo will be able to find employees for its company easily. There is a large network of railways and roads and as Deliveroo is engaged in online delivery of food so due to this Deliveroo will be benefitted by the large delivery networks and will be able to deliver the food to customers speedily (Kenis, et.al, 2012). There is a disparity of social class in Marseille and even there are so many global issues with the workers that most of the time the workers are on strike and this is the reason for unemployment in Marseille and if this remains the same with Deliveroo then this company will not be able to run its business properly in Marseille and so Deliveroo will not be able to achieve it organisational objectives through this expansion plan and even the racial violence can be reason for failure to the growth of Deliveroo in Marseille.

Marseille is known as one of the best city in France for the leader in technology and the technology and innovations of Marseille are so fast that can be very helpful for the growth of Deliveroo that the company will be easily able to use the latest technologies in its business this will enable Deliveroo for generating higher revenues and towards more expansion plans.

Most attractive option for Deliveroo for expanding to high growth emerging markets with large, growing urban populations of a scale and ensuring a fast return on investment.

Deliveroo should enter to the market of Manchester as it is most attractive option for Deliveroo for expanding to high growth emerging markets with large, growing urban populations of a scale and ensuring a fast return on investment because Manchester has all the ingredients which are required for a successful international business. The proven track record of Manchester says that Manchester has served the world from manufacturing and distributing innovating products and there are greater opportunities in Manchester which are required by Deliveroo for its expansion plans. Manchester is like a platform for the Deliveroo train and entering the market of Manchester will develop more opportunities and increased scale of operations for Deliveroo as well as this will also help Deliveroo in achieving its business goals.

Competitive environment

Competitive environment is an environment in which a business functions or business has to compete. There is a lot of competition in the market like there are so many sellers of the same products and services so there is a competition between them so every business has to face compititon in order to survive in the market same has this the competitive environment which will be faced by Deliveroo in Manchester is as follows.

• Threats of new entrants: The business of online food delivery is increasing day by day everywhere so if Deliveroo enters the market of Manchester and establishes the business there so Deliveroo has to face the competition of new entrants in the market of Manchester of the same industry that is online delivery of food. The new entrants may be providing lower cost than the products of Deliveroo so the customers of Deliveroo may get attracted to the new entrants this will result in decreasing of profits of Deliveroo so for this Deliveroo should provide quality products and services to its customers so that they retain to it for longer time (Sutherland, 2014).
• Threats of substitutes: Substitutes are important matter of concern for Deliveroo. There are so many products which can be substitute for the food products of Deliveroo as food is also cooked at home so it is very easy for the people to shift to new substitutes which has lowered cost in comparison to Deliveroo. Substitutes are easily available at low costs so the only things which can retain customers to Deliveroo and can stop them for going to substitires of the products of Deliveroo is the quality and customer satisfaction of Deliveroo (Qi, et.al, 2014).
• Bargaining power of buyers: Deliveroo must identify the bargaining powers of customers as they play an essential role in competition analysis. The porter’s model has identified the influence of customers demand on Deliveroo. In this competitive market where many other companies in Manchester are engaged in the same business of online food delivery so consumers can easily choose other companies and the substitutes of the products of Deliveroo are easily available in the market and customers can easily get distracted to other companies. In order to retain customers in long run and to provide that good quality to the customers Deliveroo needs to develop new strategies so that they can increase customer’s loyalty this will result in customer retention in Deliveroo (E. Dobbs, 2014).
• Bargaining power of suppliers: There is a great impact of Suppliers on working of Deliveroo as there are large numbers of suppliers which are providing food industry products same as Deliveroo in Manchester. The population of Manchester is so large that the overall supply for the suppliers in Deliveroo is so high. This increased number of suppliers affects the suppliers of Deliveroo but still the five forces analysis shows that the issue of supplier power is not a very major issue for Deliveroo and this issue can be easily handled. If there is a proper control channel is established which is directly linked to Deliveroo through this the threat of power of supplier can be minimised (Tehrani & Rahmani, 2016).
• Industry rivalry: Industry rivalry means the competition with any company of the same industry. There are various companies in Manchester which are dealing in the same business as Deliveroo of online delivery of food so Deliveroo has to face tough competition in Manchester market due to many other food industries. As there are high number of firms in Manchester, and even the switching cost from one firm to another firm is low so that customers can easily switch to rival industries. In order to sustain in the competitive market external forces of Deliveroo needs to get controlled so that customers are retained are longer time (Yetkin, U. 2013).

Conclusion

This report explained about Deliveroo which an online food delivery industry is having a big supply chain in many countries and Deliveroo wants to expand its business in some new cities. SWOT analysis is conducted with a view of identification of strength, weakness, opportunities and threats of a business.

Strengths (S): Defines characteristics of Deliveroo which makes it different from other companies.

Weakness (W): Disadvantages of Deliveroo which it needs to improve for better productivity.

Opportunities (O): Elements of environment which can provide advantage to Deliveroo.

Threats (T):  Elements in environment which can cause trouble to the growth of Deliveroo.

                       SWOT analysis of Deliveroo

Strengths (S) Rising demand of food Strong growth in UK market Significant team of management Systematic food preparation procedures	Weakness (W) High competition in food industry High volatility of the prices of raw material for the food Transportation costs are high Has to face challenges regarding the taste and preferences of customers
Opportunities (O) Emerging markets Expansion plans Rapidly increasing growth Economies of scale	Threats (T) Uncertain outcomes of research and development Competitors in the market   Consumers wants healthier lifestyle

This SWOT analysis defines the strength, weakness, opportunities and strengths of Deliveroo. This analysis defines the characterstics of Deliveroo which are different from other food industries in these areas Deliveroo can develop its more skills. Some weaknesses of Deliveroo are there on which company needs to focus and through overcoming all these weaknesses Deliveroo can do much better in the field of food industry. This analysis defines the opportunities for Deliveroo through which Deliveroo can expand its market and can improve its performance as well. There are some threats too which can cause trouble to the growth of Deliveroo also can become hurdle in the way of success for Deliveroo so Deliveroo needs to make strategies to overcome these hurdles (OANA  & MARIOARA, 2014).

There are two types of factors that affects the environment of any business same like this the environment of Deliveroo is also affected by two types of factors which are as follows.

• Internal environment factors: Those factors which are related to the events which occurs within the organisation only. These factors are controllable such as changes in the management, morale of employees, cultural changes in the organisation, financial changes or any such financial resourses.
• External environment factors: Those factors which are related to the events which occurs outside the organisation. These factors are uncontrollable such as economical changes, competition effects, and changes in business laws and regulations, other such factors which affect the business environment.

References

E. Dobbs, M. 2014, "Guidelines for applying Porter's five forces framework: a set of industry analysis templates", Competitiveness Review, vol. 24, no. 1, pp. 32-45.
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Qi, X.J., Sun, M.T. & Chen, M. 2014, "The Corporate's Credit Evaluation of Engineering Supervision Based on Porter's Five Forces Model", Applied Mechanics and Materials, vol. 638-640, pp. 2450.
Rafael Antonio Pertuz Belloso 2013, "A Study of the Types of Organizational Structure in Venezuelan University Institutes", Revista Electrónica de Investigación Educativa, vol. 15, no. 3.
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