BM461-GLOBAL BUSINESS ENVIRONMENT

CW2 REPORT

STUDENT-GENOVEVA IULIANA ONA

GROUP-H1

BNU-22214982

TUTOR- DOUGLAS KWANING

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 Table of Contents

1. Analysis of the Current Economic Crisis's Effect on the Central

Business District's Food Delivery
Market…………………………….3
1.1 Introduction……………………………………………….………3
1.2 An Analysis of the Delivery Food Industry…………………….3
1.3 The Threat of New Entrants to the Takeaway Food Industry.4
1.4 Influencing Factors on Market Competition……………….….4
1.5 Impact of the Present Economic Situation……………………4
1.6 Conclusion………………………………………….……………5
1.7 References……………………………………………………….5
2. Assess how the "Work From Home" trend, pushed by the global
lockout, has affected the economy and explain its pros and cons
for businesses……………………………………………………….
……..6
2.1 Introduction……………………………………………………....6
2.2 Pros for Businesses………………………….…………………7
2.3 Cons for Businesses……………………………………………8
2.4 Impact on the Economy………………………………………..8
2.5 Conclusion………………………………………………………9
2.6 References………………………………………………………9

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 1. Analysis of the Current Economic Crisis's Effect on the
Central Business District's Food Delivery Market

1.1 Introduction

The market for food takeaway in town centres has experienced substantial
expansion in recent times, primarily due to the evolving lifestyles, heightened
urbanisation, and the need for convenience. This paper provides a critical analysis of
the food takeaway industry located in the central district of London, evaluating its
degree of competitiveness within the current economic climate (Hamilton and
Webster, 2018). The objective of this study is to assess the present condition of the
market, ascertain the determinants that influence competitiveness, and scrutinise the
probable consequences of the existing economic circumstances. The food industry is
widely regarded as a highly competitive sector on a global scale. In a highly
competitive food industry, distinguishing oneself and achieving success amidst a
plethora of businesses can prove to be a challenging feat. A diverse range of
enterprises, including fast food establishments, upscale dining establishments,
mobile food vendors, and retail food outlets, are competing for the patronage of
famished consumers.

Fig 1 Effect of Covid 19 on The Business Restaurant (Sources Online,2022)

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1.2 An Analysis of the Delivery Food Industry
 Please provide a succinct summary of the food takeaway industry within the
town centre, encompassing its dimensions, expansion, and importance.
 Emphasise the wide spectrum of culinary alternatives at one's disposal,
including but not limited to fast food establishments, ethnic gastronomies, and
niche dining establishments (Kasemsap, 2018).
 The present discourse aims to examine the factors that have led to the
widespread acceptance of food takeaways. The convenience factor, evolving
consumer preferences, and technological advancements are some of the key
factors that have contributed to the popularity of food takeaways.

1.3 The Threat of New Entrants to the Takeaway Food Industry

 Determine the principal stakeholders operating in the food delivery
industry situated in the central business district.
 Assess the competitive environment through the examination of various
elements including but not limited to market share, pricing tactics, product
distinctiveness, and patronage (Adekola and Sergi, 2016).
 Analyse the degree of competition within the food takeaway industry and
the tactics employed by enterprises to attain a competitive advantage.
 The significance of variables such as geographical location, brand
recognition, food quality, customer service, and online visibility in
establishing competitiveness is a topic of discussion.

1.4 Influencing Factors on Market Competition

 Examine the extrinsic variables that impact the level of competitiveness within
the food takeaway industry.
 Evaluate the influence of the current economic climate on the market,
considering factors such as inflation, consumer expenditure trends, and
disposable income.

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 Examine the impact of governmental policies, regulations, and taxation on
food takeaway enterprises.
 Examine the impact of emerging trends such as health-conscious eating,
sustainability, and dietary restrictions on shaping the competitive environment.
1.5 Impact of the Present Economic Situation
The pandemic has had a significant effect on food businesses, particularly
in terms of altering consumer behaviour. The current trend of individuals
staying at home and refraining from frequenting public spaces has resulted
in a significant decrease in revenue for enterprises that depend on
physical dining or pedestrian activity (Lee, 2017). The food service
industry has had to adapt to the current circumstances by implementing
takeaway and delivery services, whereas the retail sector has encountered
challenges in meeting the surge in demand for online ordering and delivery
facilities.
The pandemic has caused significant disruptions to supply chains,
resulting in a major impact. The limitations imposed on travel and
transportation have presented challenges for businesses in procuring
ingredients and products from foreign countries or other regions (Althouse,
Allan and Hartt, 2016). Consequently, the circumstances have resulted in
scarcities of specific commodities and escalated expenses for enterprises
that have been compelled to seek substitute providers.
 Assess the probable influence of the current economic climate on the food
takeaway industry within the central business district.
 Examine the impact of economic contractions, recessions, or periods of
ambiguity on consumer expenditure patterns and the market demand for
food takeaway services.
 Analyse the potential impact of inflationary pressures and increasing input
costs on the pricing strategies and profitability of food takeaway
enterprises.
 Examine the prospective advantages and hindrances that may emerge
from economic circumstances, such as heightened need for cost-effective
alternatives, transition towards digital ordering, or consumer emphasis on
cost-effectiveness.

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1.6 Conclusion

To conclude, the food takeaway sector located in the central area of London is a
dynamic and competitive market influenced by evolving consumer preferences and
lifestyle decisions. This paper has conducted a critical analysis of market
competitiveness, considering various factors including market share, pricing, product
differentiation, and customer loyalty. Furthermore, an evaluation has been conducted
on the potential effects of the current economic climate, encompassing aspects such
as inflation, consumer expenditure trends, and governmental policies. Through
comprehension of these variables, enterprises operating in the food takeaway
industry can modify their tactics to sustain competitiveness and flourish amidst
arduous economic conditions. Considering the dynamic nature of the market, it is
imperative for enterprises to prioritise key elements such as innovation, quality,
customer service, and cost optimisation to address the changing needs of customers
and sustain a competitive advantage.

1.7 References

Books and Journal

Adekola, A. and Sergi, B.S., 2016. Global business management: A cross-cultural

perspective. Routledge.

Althouse, N., Allan, L.A. and Hartt, C.M., 2016. The Future of Business. Nelson
Education.

Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.

Kasemsap, K., 2018. Mastering business process management and business

intelligence in global business. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 76-96). IGI Global.

Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI
Global

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 2. Assess how the "Work from Home" trend, pushed by the
global lockout, has affected the economy, and explain its pros
and cons for businesses.

2.1 Introduction

The global lockdowns and restrictions imposed due to the COVID-19 pandemic have
necessitated the adaptation of many businesses to the work-from-home trend. The
transition has caused a disturbance in the conventional workplace setting, leading
enterprises to reassess their procedures and framework (Gottlieb,

Grobovsek and Poschke, 2020).

Although remote work has been accepted by certain organisations for a considerable
period, the outbreak of the pandemic has expedited its implementation. The present
study aims to evaluate the impact of the work-from-home phenomenon on the
economy, and to analyse the advantages and disadvantages that it has brought to
businesses.

2.2 Pros for Businesses

The practise of remote work has the potential to substantially decrease overhead
expenses for enterprises. This encompasses expenditures such as rental fees, utility
charges, and procurement of office equipment (Fonner and Roloff, 2010). The
implementation of a remote workforce can result in cost savings for businesses,
allowing for the reallocation of resources to other areas within the organisation.

 Enhanced productivity: Several enterprises have documented augmented

levels of productivity amongst employees who work remotely. Due to the
flexibility of schedules and reduced distractions, employees can allocate more
time towards their work. Furthermore, individuals who work remotely exhibit a

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 greater level of motivation and exhibit a lower frequency of absences due to
illness, ultimately leading to increased levels of productivity
(Gottlieb,Grobovsek and Poschke, 2020).
 The ability to work remotely provides businesses with the opportunity to
access a more extensive range of skilled professionals. This phenomenon
can be attributed to the absence of geographical constraints, which enables
organisations to recruit personnel from any part of the globe. Through this
approach, organisations can expand their reach to a broader range of
competent applicants and leverage the advantages of varied viewpoint.

2.3 Cons for Businesses

Remote workers encounter significant communication challenges, with one of the

most prominent being the issue of effective communication. The establishment and
maintenance of unambiguous and uniform communication channels can pose a
challenge when employees are operating remotely from their homes. This
phenomenon has the potential to result in misinterpretations, failure to meet
established timelines, and reduced efficiency.

 Challenges in managing remote teams: The management of remote teams

can pose difficulties for certain enterprises. The management of remote teams
necessitates distinct strategies and tools in comparison to the management of
on-site teams (Kramer and Kramer, 2020). Organisations that lack readiness
for this transition may encounter difficulties in efficiently overseeing their
geographically dispersed workforce.
 Diminished collaboration: The nature of remote work can pose additional
difficulties for individuals engaging in collaborative efforts. The reason for this
is their physical absence, which impedes their ability to engage in
collaborative endeavours and generate ideas through group brainstorming
sessions (Barrot, Grassi and Sauvagnat, 2021). This phenomenon may result
in diminished levels of cooperation, ingenuity, and inventive thinking.

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 2.4 Impact on the Economy

The phenomenon of remote work has had a notable influence on the economy. One
perspective suggests that the utilisation of technology has facilitated the continuity of
certain enterprises amidst the pandemic, thereby averting potential unemployment
and business closures (Berinato, 2014). Furthermore, remote work has enabled
individuals to economise on transportation, dining out, and other expenditures linked
to working away from their residence. Consequently, a notable outcome of this
phenomenon is the augmentation of individuals' disposable income.

Conversely, the transition towards remote work has had an adverse effect on sectors
such as transportation, hospitality, and retail. The pandemic has led to substantial job
losses in industries that heavily depend on face-to-face interactions (Fadinger and
Schymik, 2020). In addition, the phenomenon of remote work has had an impact on
the commercial real estate sector, as numerous enterprises have opted to reduce
their office footprint or contemplate a permanent shift towards remote work.

2.5 Conclusion

In summary, the phenomenon of remote work has yielded both favourable and
unfavourable consequences for enterprises and the financial system. Although it has
facilitated cost reduction and enabled access to a broader range of skilled personnel,
it has also posed difficulties in terms of communication and administration.
Furthermore, although the utilisation of technology has facilitated the continuity of
certain sectors amidst the pandemic, it has had an adverse effect on other
industries. Inevitably, the trend of remote work is expected to persist to a certain
extent, thereby necessitating businesses to modify their strategies and devise
solutions to tackle the obstacles it poses.

2.6 References

Berinato, S., 2014. To raise productivity, let more employees work from home.
Harvard business review, 92(1), p.12.
Barrot, J.N., Grassi, B. and Sauvagnat, J., 2021, May. Sectoral effects of social

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distancing. In AEA Papers and Proceedings (Vol. 111, pp. 277-81)

Fadinger, H. and Schymik, J., 2020. The effects of working from home
on covid-19 infections and production a macroeconomic analysis for Germany.
Covid Economics,9(24), pp.107-139
Fonner, K.L. and Roloff, M.E., 2010. Why teleworkers are more satisfied with their
jobs than are office-based workers: When less contact is beneficial. Journal of
Applied
Communication Research, 38(4), pp.336-361
Gottlieb, C., Grobovsek, J. and Poschke, M., 2020. Working from home across
countries. Covid Economics
Kramer, A., and Kramer, K.Z., 2020. The potential impact of the Covid-
19 pandemic on occupational status, work from home, and occupational
mobility. Journal of Vocational Behaviour, 119, p.103442

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