Global Business Environment Assignment Sample

Impact of COVID-19 on Takeaway Businesses and Remote Work in the UK Economy

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Global Business Environment Assignment

Introduction of Takeaway Industry and Work From Home Trend in the UK

The takeaway industry is one of the beneficiaries of the instability of Covid and the lockdown. The cost-of-living issue, which seems to affect households' purchasing power by an approximation of £3,000 by the end of next year, poses a fresh challenge to it. Takeaway businesses have adapted to a consumer purchasing patterns shift(Nguyen et. al. 2018). They provide menus at reasonable prices, frequent sales, and discounts, as well as take inflation-related operating costs increases into account. The advantages are numerous, especially for new businesses which use available resources which can further cut down on other expenses like rent or travel. But as professionals are also aware of these, which create challenges for the company. Takeaways are currently a great business for so many enterprises and also for those hardworking people who look forward to providing popular service to a wide range of customer base(Janssen et. al. 2018).

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The report highlights the local business food takeaway market of Watford - WD18, London in which there are numerous companies involved in the takeout business. The report discusses the level of competition in the London market and the impacts of these takeaways’ businesses on the economy of the country. The second part of the report highlights the facts about the effect of COVID-19 on the professional life of people. This pandemic situation has bought the idea of working from home, which is trending everywhere in the world. The report also talks about the global effect of this lockdown on the economy.


Food takeaway market in London

In the United Kingdom, takeout is a common and popular eating option and is part of a significant part of the country's food industry. In the UK, local people spent an average around five British pounds on weekly takeout based on report of year 2021 (Robinson et. al. 2019) In the UK, the average yearly expenditure on takeout was estimated at around 641 British pounds in the year 2021(Song et. al. 2020).The takeaway business sector has now entered a new phase with the recent development and adaptation of online ordering services and now the businesses are focusing on restaurant delivery. In 2021, the market for takeaway delivery in the UK was estimated at around 10.5 billion British pounds, as anoutcome of the development of online delivery adaptations and ideas(Gallego-Schmid et. al. 2019).

The local business in Watford-WD18, is London based local food business delivers to their customer with the help of various delivery companies, among them Deliveroo is the most popular food delivery company. Most of the Local restaurants in Watford-WD18, do not have delivery services so with the help of several delivery service companies these restaurants deliver food to their customers. Companies like Uber Eats, Deliveroo, and JUST EAT have tie-ups with companies and restaurants like KFC, Pepe’s Peri Peri, McDonald's, Kebab centre, sea world fish and chips, etc. and companies like Domino’s and Pizza Huts which also have their delivery services but they also prefer other delivery service company like Deliveroo, Uber Eats, etc.

Assessing the level of competitiveness

The well-known online takeaway companies in the UK are Domino's Pizza, Uber Eats, Deliveroo, and Just Eat A worldwide study on consumer supportedthat in the nation in 2022, around 69 percent of respondents are using Just Eat from last 12 months (Hishamuddin, 2019). Deliveroo and Uber Eats are utilized by 48% of respondents.A prominent participant in the pizza delivery business, the international brand Domino's Pizza, which functions in the UK under the franchise Domino's Pizza Group, allows consumers to order both online and over the phone.

The UK and Ireland-based Domino's Pizza Group has seen year-over-year growth in system sales since 2017. Sales of systems surpassed 1.49 billion British pounds in 2021. In the UK, the market for pizza delivery and takeout was anticipated to grow to an all-time high of 3.46 billion pounds in 2022.

Impact on the economic situation

Due to the incapability to deliver indoor dining, the COVID-19 pandemic had a substantial negative effect on restaurants in the UK. The number of customers in UK restaurants in the staring stage of the COVID-19 pandemic in March 2020 reduced by 100% comparatively to the same time period last year.This further decreased in indoor eating which made possible for the online meal delivery or takeaway sector to explore its market share. Revenues from takeaway platforms are anticipated to increase over the next several years.The UK industry for restaurant-to-consumer internet meal delivery service is anticipated to produce more than $5 billion in sales by 2024(Cano et. al. 2021) Platform-to-consumer delivery was anticipated to reach more than 2.3 billion people.

The business achieved success in a year when meal delivery was a hot subject the foodtake away business with $189.51 in trade on their first day the companies were worth $72 billion.While the Covid-19 outbreak has had a range of effects on every industry, in the case of on-demand food delivery, the year 2020 was a quite significant. Due to the forced closure of eateries during lockdowns, meal delivery has become a crucial component to maintain business. Local takeaway business distinguishes itself from competitors like Deliveroo and Uber Eats by allowing eateries to create their own ordering system. According to research report,customers' desire for these services surged during Pandemic as a result of their displeasure with third-party marketplaces and their exorbitant commissions."There were restaurants last year that offered dine-in service, and some of their income came from online markets like Deliveroo and Uber Eats.

When Covid arrived, all of their sales from these markets came at once, and they quickly realised that it was quite expensive and they weren't making a profit.The local business needed technology to accept orders directly from clients at the time because they were totally reliant on marketplaces, but it didn't work for them.Whatever business model they selected; it is obvious that there has been fierce competition within the sector. Consolidation is happening, though, whether it be due to Uber buying Postmates or Just Eat Takeaway buying Grubhub. In terms of market share, it's also a hint that the major players think the winner always prevails.


Assess how the 'Work From Home trend, which was accelerated by the global lockdown, has impacted the economy

There is a lot of change has occurred in the last few years, post-pandemic. When it comes to businesses and the UK economy, there are lots of changes that have been anticipated throughout the pandemic (Kramer and Kramer, 2020). Working from home is something that has set a new trend all around the world, in this trend people were working from their homes during the period of lockdown, and in some businesses, this trend is still followed. This trend helps in continuing the work of business, all the employees were working from their homes. In a survey, 3 out of five people said that they wanted to opt for working from home as a full-time option(Ipsen et. al. 2021). This represents a huge shift of opinion in comparison to how people thought about remote working before the pandemic situation. before 2020, more than 2/3 of people said that they have never worked from home before and around 11% of employees agreed on having experience working remotely full-time.

Knowledge of business theory and the internal environment using reputable sources

The assumptions upon which business structure was constructed and runs do not reflect the reality. The assumptions determine the behaviour of any company and dictate the decisions of the best way to conduct business and not to do, as well as define what it considers to be meaningful outcomes. These assumptions relate to markets. They focus on finding out about competitors and customers as well as their behaviour and values. They are about technology and its dynamic as well as the strengths and weaknesses of a company. These assumptions concern the amount a business is compensated for which are called the company's theories of business.

The figure below shows the effect of Working from home and the internal environment effect in the SWOT table.

Global Business Environment

Figure 1: A Study on The Effectiveness of Working from Home During Covid 19 Pandemic: A Long Term Solution in The New Normal

(Source: Samarasinghe, 2022)

The benefits and disadvantages created for business organizations in the UK

To fight the COVID-19 pandemic, the UK implemented a lockdown on March 23, 2020. As a result, the problem with public health have been resolved, but the economy of country suffered a lot. On basis of the Office of National Statistics, around 23% of businesses provisionally ceased operations or paused operations in between April 6 and April 19, 2020, and around 60% of those who did so, results in loss in sales. According to estimates, economic activity, as determined by GDP, will declined around 30% from February 2020 to typical lockdown week of May 2020(Keogh-Brown et. al. 2020).

As lockdown restrictions are eased, economic activity restarted, but the patterns and ratesare quite unknown and will be differing by industry. In the middle-case scenario, the UK's GDP is projected to fall by 9 percent in 2020. The employment is suggestively affected by such a huge decrease in output. It was found that 7.6 million jobs—a word that used to refer to permanent layoffs, brief furloughs, and cutbacks in hours and pay—are in danger during a lockdown. People with the low income’s groups were at more risk of losing their jobs because of the highly disturbed nature of the hazards.


In the new post-COVID world the demand for food availability is on the boom, it is seen that there are so many brands that are looking forward offer food takeaway services. To make this service available several restaurants rely on a third party which is a food delivery partner. The report states about, the takeaway industry which is one of the most benefited sectors from the instability of Covid and the lockdown. Post-pandemic it has seen a huge increase in food takeaway service all across the UK and beyond, with the company like Deliveroo having opened up various new revenue streams for their partner restaurants. This takeaway facility is also part of being competitive in the market, as the restaurants who looks forward to attract their customer always tries to provide various facilities one of them is takeaway or delivery services by which the customer can enjoy the same taste at his home also. These takeaway businesses are a huge part of and have also created a social habit, by offering convenient ways for their customer to eat their favorite food also at the time of the pandemic.


Abhishek Goel, 2021. Deliveroo business model: How does it work and make money. (Online). :<>. (Accessed on 14/12/2022).

Barrero, J.M., Bloom, N. and Davis, S.J., 2021. Why working from home will stick (No. w28731). National Bureau of Economic Research.

Cano, M.R., Espelt, R. and Morell, M.F., 2021. Flexibility and freedom for whom? Precarity, freedom and flexibility in on-demand food delivery. Work Organisation, Labour & Globalisation15(1), pp.46-68.

Drahokoupil, J. and Piasna, A., 2019. Work in the platform economy: Deliveroo riders in Belgium and the SMart arrangement. ETUI Research Paper-Working Paper.

Gallego-Schmid, A., Mendoza, J.M.F. and Azapagic, A., 2019. Environmental impacts of takeaway food containers. Journal of Cleaner Production211, pp.417-427.

Hishamuddin, N.S., 2019. Understanding the growth of takeaway food apps in the UK: A supplier and consumer perspective.

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 Health18(4), p.1826.

Janssen, H.G., Davies, I.G., Richardson, L.D. and Stevenson, L., 2018. Determinants of takeaway and fast food consumption: a narrative review. Nutrition research reviews31(1), pp.16-34.

Keogh-Brown, M.R., Jensen, H.T., Edmunds, W.J. and Smith, R.D., 2020. The impact of Covid-19, associated behaviours and policies on the UK economy: A computable general equilibrium model. SSM-population health12, p.100651.

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 Behavior119, p.103442.

Nguyen, Q., Nisar, T.M., Knox, D. and Prabhakar, G.P., 2018. Understanding customer satisfaction in the UK quick service restaurant industry: The influence of the tangible attributes of perceived service quality. British Food Journal.

Roberts, V., Vowden, D., Allen, R. and Geeurickx, K., 2020. The UK Competition Authority announces its provisional clearance of a proposed acquisition of a stake in a food delivery company in its first application of “failing firm” defence during the COVID-19 pandemic (Amazon/Deliveroo). e-Competitions Bulletin, (April 2020).

Robinson, E., Burton, S., Gough, T., Jones, A. and Haynes, A., 2019. Point of choice kilocalorie labelling in the UK eating out of home sector: a descriptive study of major chains. BMC Public Health19(1), pp.1-6.

Shenker, J., 2021. They’re stealing our customers and we’ve had enough’: Is Deliveroo killing restaurant culture. The Guardian25.

Song, C., Guo, C., Hunt, K. and Zhuang, J., 2020. An analysis of public opinions regarding take-away food safety: A 2015–2018 case study on Sina Weibo. Foods9(4), p.511.

Thilina Samarasinghe, 2021. A Study on The Effectiveness of Working from Home During Covid 19 Pandemic: A Long Term Solution in The New Normal(Online). <> accessed to 20.12.2022.


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