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Introduction: BM461 Global Business Environment
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The report is made to discuss the market structure and the effect of porter's five force model in food takeaway businesses. The report will evaluate knowledge of competitiveness and economic activity in a local environment (Mohamed and Lashine, 2003). It will also evaluate the knowledge of business theory and the internal environment. The key features of the report will assess on work from home trend that is implemented during the global pandemic. The report will discuss the benefits and difficulty of working from home in the information technology industry (Kasemsap, 2018).
Assess the level of competitiveness in the food takeaway market
Market structure is a phrase in economy to describe the categorization and discrimination of diverse companies according to the surroundings in which they operate the nature of their business and the business rivalry they face. The appraisal is based on factors such as the number of firms operating in a definite industry, the challenge they face in that industry, their reaction to these confronts, and the outcomes. The 4 accepted a type of market structures includes perfect competition, oligopoly, monopoly market, and monopolistic competition.
Perfect competition: this is a type of market that contains many firms which produce similar products and charge the same prices for them. The firms set their product price per customer demand, and the prices rarely change (Shubik and Levitan, 2013). If a firm raises prices, it is expected to lose customers.
Monopolistic competition: this market structure combines the element of competitive and monopolistic markets, having low entry barriers and including many firms that sell comparable products with characteristic variations.
Oligopoly: in this market, a few big firms control the market, sell identical or differentiated products, and may work together with one another to influence the market price. The firm’s strategies and actions in this market may affect or influence its participants.
Monopoly: In this market system, a single firm dominates the market with its distinctive products. Other firms may find it complicated or impracticable to enter this marketplace because the initial set-up costs can be very high.
Porter’s Five Forces
This analysis is commonly used to recognize a firm’s construction to establish a corporate strategy. These 5 forces include:
Prospective of new entrants into the industry: larger the quantity of rival firms, all along with the number of corresponding products and services they propose, the lesser the power of a firm (Dobbs, 2014). Buyers and suppliers search for a firm’s opposition if they are capable to offer an enhanced deal at lesser prices.
Power of suppliers: less money and time it costs for a participant to enter a firm’s market and be a well-organized competitor, the extra familiar firm’s position could be considerably weakened.
Power of customers: It is affected by the integer of supplier of key input of supplies and services and how distinguishing these inputs are, and how seriously it would cost a firm to change to another supplier. The lesser the number of suppliers to the trade, the extra a firm would depend on a supplier.
Rivalry among existing competitors: It is exaggerated by how numerous consumers a firm has, how significant each consumer is, and how greatly it would charge a business to discover new consumers or market for its productivity.
The threat of substitute products: alternative supplies or services that can be used in place of a firm’s products or services create a threat (Bruijl and Gerard, 2018). Firms that manufacture goods or services for which there is no close substitute will have extra authority to boost price and lock in favorable conditions.
Figure 1 Porter 5 forces
Consider the stage of its completion in the food takeaway market
Porter forces analysis assists to analyze food takeaway markets' present position in the marketplace based on multiple internal and external factors such as competitors, customers, financial strength, suppliers, prospect scope, and alternating solution. The purpose of this model can help the profitability of on-demand food delivery companies to establish the industry's pleasant appearance and appreciate its competitive position in the market.
Negotiating power of supplier: it varies between high to medium. Furthermore, the raw material comprises goods, which are extremely competitive in pricing. However, price remains variable depending on the exports and domestic demands, and the yield of the crops (Narayanan and Fahey, 2005). To make sure constant supplies for the considered production, annual cost contracts become critical, accounting for hedging the monetary risk.
Threats of alternative products: it becomes high due to the character of the products. Effortless accessibility to similar products boosts the threat of alternate goods. This examination gives a prospectus to proactively work on the manufactured goods group and features.
Bargaining control of purchaser: these again vary from high to medium. Due to superior competition accessible in each group, the bargaining power of the buyer goes up. With the discounts offered in the E-commerce, retail, and food aggregators buyers get a bundle of options across the category. Takeaways companies considerate this module can give a chance to work on adaptable pricing and marketing approach.
Bargaining power of seller: this varies between high to medium. Frequently, the raw material comprises goods, which are extremely competitive in pricing; furthermore, prices keep fluctuating depending on the yield of the exports and domestic demands and crops.
The threat of new entrants: this also changes from short to high, depending on the group of products. The food category, with superior transportation expenses, become low and with the low charge of operation, it becomes higher.
Report 2: Economic impact of “working from home”
Impact of lockdown on business practices
The coronavirus global pandemic has considerably distorted the place of work. To slow the virus increase and defend workers, many firms have altered to isolated work, with video calls and immediate messaging, substitute meetings, and smash room communications. Over a phase of time, working from home has also led to less demand for trade real estate. With a big chunk of workers working from home, many organizations might not require to operate the big offices that they at present have. Working from home throughout the global pandemic has allowed companies and workers who do their work on the processor, by phone, and through videoconferencing to carry out real-time experimentation on the requirement of departing to a central office 5 days a week (Purwanto, et. al. 2020). Isolated work has been exposed to boost worker productivity but can lead to remoteness and pressure as the line between work and home blurs. Some concerns being deficient in unexpected encounters with co-workers could smother creativity and decrease team consistency. A hybrid office may need many firms to improve their meeting room knowledge and technology so that an isolated and on-site workforce can converse effectively.
For example organizations like Facebook broadcasted that it would allow as many as half of its almost 45,000 workers to work from home permanently, following some lesser technical companies such as Twitter. Other sectors are bearing in mind similar changes and the indemnity massive nationwide announced it would take on a hybrid model for maintaining offices in 4 locations with remote work somewhere else. Companies within industries that are affected by lockdowns such as hospitality, arts, construction, retail, and industrialized, that account for 22.6% of GDP have shown concern about implementing public health boundaries (Galanti, et. al. 2021).
Advantages and disadvantages of working from home in Information technology industry
The global pandemic gave the response to this and bought with itself the latest work culture work from home. Working from a house may sound attractive. Though, like any work, there is a numeral of drawback of working from home.
The advantages of working from home in the information technology industry
- Safety, efficiency, and connectivity remain crucial in distant work environments and many organizations have looked to IT sector to find solution within a short time.
- Increased creativity and proactively in communication Certain IT experts have developed new tools to help users deal with ordinary IT problems improved. This positive approach eventually reduced the amount of work IT sectors employees to do and let them focus on other important work.
- Security: Logging in to different emails, chats, software, or websites that are relevant to the company can be accomplished with multi-factor authentication, which will prevent any access that is not authorized.
- Company can attract the top employees from across the world, regardless of where they work through this policy. In the end, job candidates can also look for jobs around the world according to their interests and get the opportunity to join the companies they prefer.
- Cost savings: Since WFH lets employees operate at their own location so the cost of office infrastructure that is borne through the company is cut substantially. Thus, the total cost of the business is reduced.
- Enhanced technical skills:This often require using technical applications such as communication, online meeting, and teamwork platform (Ipsen, et. al. 2021).
Disadvantages of working from home in the information technology industry
- Massive network changes: Issues with networks at a central office clearly aren't ideal. However, there is a bright side in that IT experts working on these issue at the organization have more control over and understanding of the systems and hardware being utilized. With the advent of home networks and devices, IT professionals face significantly additional to deal with.
- The challenges of adjust to work-life balance: IT professionals functioning distantly are faced with the same obstacles as professional working in other positions in addition to their role as experts for their contemporaries
- There are less opportunity to teach or clarify: As association shifts to a digital medium and communication becomes more difficult.
- Distraction at home: Disruptions like pets, kids, TV, or household everyday jobs can affect job performance. Too many distractions can lead to reducing in motivation and productivity.
- Workplace disconnect: it can sometimes direct to detach between employees and co-workers. Work from home would not have admittance to instant information about the significant business process until somebody in the firm communicates it.
The report has vitally inspected the food takeaway and assesses the level of competition. The report has highlighted the impact of the food takeaway market on the present economic situation. The report has critically evaluated knowledge of competitiveness and economic activity in a local environment. It has also evaluated the knowledge of business theory and the internal environment.
Galanti, T., Guidetti, G., Mazzei, E., Zappalà, S. and Toscano, F., 2021. Work from home during the COVID-19 outbreak: The impact on employees’ remote work productivity, engagement, and stress. Journal of occupational and environmental medicine, 63(7), p.e426.
- Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative and changing business environment. Available at SSRN 3192207.
- Dobbs, M.E., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness review.
- Ipsen, C., van Veldhoven, M., Kirchner, K. and Hansen, J.P., 2021. Six key advantages and disadvantages of working from home in Europe during COVID-19. International Journal of Environmental Research and Public Health, 18(4), p.1826.
- 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.
- Mohamed, E.K. and Lashine, S.H., 2003. Accounting knowledge and skills and the challenges of a global business environment. Managerial finance.
- Narayanan, V.K. and Fahey, L., 2005. The relevance of the institutional underpinnings of Porter's five forces framework to emerging economies: An epistemological analysis. Journal of Management Studies, 42(1), pp.207-223.
- Purwanto, A., Asbari, M., Fahlevi, M., Mufid, A., Agistiawati, E., Cahyono, Y. and Suryani, P., 2020. Impact of work from home (WFH) on Indonesian teachers performance during the Covid-19 pandemic: An exploratory study. International Journal of Advanced Science and Technology, 29(5), pp.6235-6244.
- Shubik, M. and Levitan, R., 2013. Market structure and behavior. In Market Structure and Behavior. Harvard University Press.