Module Aims
1. To enable students to understand the nature of international business, the international
business environment and their inter-relationships.
2. To enable students to understand and evaluate relevant concepts and theories of
international trade, investment and internationalisation of business.
3. To develop students’ understanding of the strategy that multinational enterprises adopt
in their approach to international business.
Word count:
The word count for the report is 3000 words (+ / – 10%). You should provide a cumulative
word-count of the document
The word count excludes the following:
• cover page
• contents page
• references
• tables
• diagrams
• appendices
Note: Executive Summary is required but would not be included in word count
Assessment task details and instructions Background
Deliveroo, the start-up has revolutionised food delivery. It was worth $2 billion prior to the
Amazon deal and is was once in talks to sell to Uber for billions of dollars. Amazon
participated in a $575 million investment round and the deal makes Deliveroo Britain’s
largest unicorn tech startup, with a valuation north of $4 billion. Deliveroo now works with
over 80,000 restaurants. It has 60,000 riders and 2,500 employees around the world. It
operates in over 500 cities in 14 countries: Australia, Belgium, France, Germany, Hong Kong,
Italy, Ireland, Netherlands, Singapore, Spain, Taiwan, United Arab Emirates, Kuwait and the
UK1. Global sales at the firm more than doubled in 2017, jumping to £277m, but its losses
continued to increase, doubling to nearly £185m as it invested in global expansion. August
2019, the company decided to pull itself out of German market owing to intense
competition and frantic M&A activity in the food delivery sector (Financial times, 2019)2
Task Details
The students need to answer the following two questions for this assignment.
QUESTION 1:
Assess the attractiveness of the UK market for further growth and identify the potential
benefits that can be derived from a further worldwide expansion.
(40 marks)
QUESTION 2
The company is examining the possibility to expand further worldwide and Will Shu, the
CEO and co-founder of Deliveroo would like to seek your advice about the feasibility and
entry strategies for entering a new country.
You are required to examine the following three aspects of internationalisation and provide
recommendations based on the analyses you have carried out:
(a) Suggest only one country to enter and based on thorough analysis provide the rationale
for choosing this country for international expansion; this country can be anywhere in the
world except those that the company has already a presence there.
(25 marks)
(b) Suggest the optimal rate of international expansion in the chosen country (Small- or
Large-scale expansion); and
(10 marks) (c) The most suitable entry strategy and entry mode for entering that particular
country.
Further Guidance and Considerations
For Question 1:
(25 marks)
(60 marks in total for Q2)
You could do a STEEPLE/PESTLE analysis on the general environment of UK to assess various
trends relating to the general environment and identify various opportunities and threats
facing Deliveroo. You could also do a Porter’s five forces analysis to assess the
attractiveness of Deliveroo. These analyses would help you to gain a good understanding of
the situation in the domestic market (UK) and identify potential benefits of
internationalisation
Your analysis should also include (i) an examination of the market demand for the food
delivery that exist in the UK market (i.e. level of saturation of the market, possibilities for
further domestic expansion) (ii) a discussion about whether the company should go abroad
for deriving substantial benefits; (iii) cost considerations relating to these potential
expansions and other relevant economic issues (i.e. exchange rates); (iv) possible legal
barriers/regulations might have an impact on overseas expansion; and (v) level of political
stability, availability of infrastructure, labour costs and other relevant issues in certain
countries which are potential targets for overseas expansion.
For Question 2:
Q2(a)
In this question you need to suggest a country which could be chosen as a target for
overseas expansion for Deliveroo and provide the rationale for choosing this country. You
need to assess the level of attractiveness of the countries under consideration for
international expansion by examining the levels of demand for the Deliveroo offerings,
extent of market saturation. You may also need to look at the cultural factors that have
impact in the host country. After identifying a suitable country for international expansion,
you could do a STEEPLE/PESTLE analysis on this country and also a Porter’s five forces
analyses of the relevant industry for Deliveroo in this country. These analyses are similar to
the STEEPLE and five forces analyses with a focus on the UK market suggested to answer
question 1. Here the difference is that you will be focussing on the chosen country when
you carry out these analyses.
Q2(b)
Here the focus should be on whether the company should start expansion in that country
on a small scale or should it go on a large scale. You could examine the advantages and
disadvantages of each option by evaluating the conditions that exist and suggest the option
to be chosen.
Q2(c)
In this question you need to suggest the most suitable international strategy and the most
appropriate mode of entry for Deliveroo to enter the foreign market. While discussing
about the suitability of the international strategies you could examine the internal resources
and capabilities of Deliveroo, levels of pressure for cost reduction the company is facing
(high or small?), the extent of local adaptation which have to be implemented while
entering the chosen country, the extent of global integration which could to achieved, the
advantages relating to economies of scale and scale which can be derived etc. could be
examined. These factors along with other relevant factors need to be considered while
choosing the most suitable strategy option. There are four major strategies namely Global
Standardization, Localization (also known as “Multidomestic”), Transnational and
International (also known as “Home Replication”) strategies.
In the second part of the question you need to suggest the most appropriate mode of entry
for entering the chosen country. There are six different entry modes namely Exporting,
Turnkey Project, Licencing, Franchising, Joint Venture and Wholly owned subsidiary
(Greenfield venture or Acquisition). You need to suggest the most preferable entry mode.
This is an individual assignment and should be presented in a REPORT format with a word
count of 3,000 words (word count excludes figures, tables, charts, appendices and list of
references). The editorial requirements are: font Arial 12 and one and a half line spacing.
It is important to bear in mind the following when producing your individual submission:
1. Format and Framework. You will need to decide on an organising/logical framework for
your submission. A good framework provides a logical structure for analysis and evaluation.
It should enable you to establish a clear line of development of your arguments, leading to
your conclusions and recommendations. The format should reflect the chosen framework.
The appropriate use of headings and subheadings
should allow the reader to follow the logical development of your argument. But you should
avoid over-fragmentation as this often produces disjointed and superficial sections.
2. Focus. This itself is related to 1 above. Given the word limit, it is impossible to cover
every possible point in detail. Consequently, you will need to decide what to include,
what to exclude and which areas should be given greater importance in your
submission. In doing so, you should provide some rationale for these decisions you
have taken in focusing your submission.
3. Relevant theory/models/frameworks/concepts. This point itself relates to the above
two points (and the one that follows). Very soon in your research you are likely to
find that a major problem is the volume of information available. Appropriate use of
relevant theory/models/ frameworks/concepts provides a means of deciding what
information is included, how much weight it is given, and how it might be analysed
and evaluated.
4. Depth of Research. The report should demonstrate your ability to identify the
relevant and authentic sources of information thus demonstrating deep research
capabilities.
5. Description vs. Analysis and Evaluation. It is important that your submission
demonstrates that you have attempted to analyse and evaluate the information you
are presenting. Simply reproducing factual information that you have gathered is
likely to result in a fail mark for your submission.
6. Referencing. You need to provide full references for all factual information, whether
that information is in the form of text, tables, charts, graphs or any other format. If
you fail to provide a reference for an item of information, that information will be
discounted, and you will receive no credit for it. The same applies to any relevant
theory/models/ frameworks/concepts you use. Indeed, failure to reference can
leave you open to an accusation of plagiarism. You need to provide a full list of your
references in an appendix to your submission. Information on referencing and
avoiding plagiarism was again provided at final year induction. You are required to
ensure that you are fully conversant with it. Further support is provided via Salford
Business School’s Achievement Coaches and the Study Skills sessions they provide,
and via the University’s Education Development Unit. Details of all of this support
are available on the intranet.
7. Conclusions & Recommendations. These should follow logically from and be
supported by the substantive factual, analytical and evaluative content of your
submission.
8. Presentation of your individual written submission. It is a requirement that your
submission (including any tables, charts, graphs etc.) is word-processed, with page
numbering and use of appropriate headers/footers. Editorial requirement: font Arial
12, spaces 1.5.
Assessed intended learning outcomes
On successful completion of this assessment, you will be able to:
Knowledge and Understanding
1. Appraise the nature of international business and the forces influencing its
development.
2. Analyse the international business environment and the inter-relationships that exist
between the organisation and the international business environment.
3. Define, discuss and appraise relevant concepts and theories of international trade,
investment and internationalization of business.
4. Analyse and evaluate the strategic stance that organisations adopt in the context of
their international business activities.
Transferable/Key Skills and other Attributes
1. Enhance analytical and evaluative skills utilising data, articles and other lecture,
seminar and own researched materials.
2. Develop research and information gathering skills