8 Pages
2091 Words
Introduction of Food Takeaway Surge in the UK
Food takeaway in the market has taken over the UK market this has been accelerated in recent years due to the pandemic situation. Many of the takeaway services in restaurants have made immense profits during the pandemic as there was a lockdown in the nation so having a meal in a restaurant feeding was not possible. Around 7.6 million people suffered joblessness many businesses have to face immense loss and due to this employees have to suffer risk regarding their jobs. Various organisations have made their way out for effective business as they have applied for work-from-home for employees. This has brought an effective solution for both employees and the organisation.
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Report 1 - Assessing The Level Of Competitiveness In Food Takeaway Market
Market structure
The market structure of takeaway businesses in the UK is monopolistic competitiveness. It is also known as a competitive market, various companies follow the takeaway business during corona. The competition has grown to its highest extent because less financial support is needed to conduct the business. The takeaway business has increased immensely from 2017 to 2022 and the size of the UK market regarding takeaway business is £21bn. The market size in the takeaway business is expected to increase by 51.4% by the end of 2022. The food takeaway has performed effectively compared to other accommodation and food services. There is a continuous demand for takeaway food services as they comfort consumers. The supply chain management process is served and has notified that take away business is one of the key buying as well as selling industries. The pandemic has made a huge change in the takeaway business where many online businesses have immerged and made huge revenue. The emerging online takeaway services in the UK are Uber Eats, Just Eat and Deliveroo. Foodservice in 2020 was shown a huge growth of nearly £11bilion and a target to grow up to £12.6 billion by 2024 (Hishamuddin, 2019). Porter's five forces play a great role in analysing the market it provides an effective power in takeaway business which is organised online. The UK has experienced that out of 10 people 7 used to order their food by using the online application B2B package and parcel is supported by effective technology that helps in same day delivery and this has led to immense growth in the market as it provides a rapid response. The takeaway delivery “sector has existed for several decades but remained small and operated mostly by independent takeaway restaurants and a few pizza chains” (Allen et al. 2018). It has been noticed in recent 3 years that different online platforms are playing an important role in this business.
Porter five forces
The bargaining power of suppliers is medium as there is less competition in rural areas and the price is also controlled due to competition in the market and government agencies have broken the monopoly of food takeaway. The threat of substitute products is high as several online services are present in the UK which provide a variety of options to consumers. Online delivery of food items is conducted by three major brands Uber Eats, Just Eat and Delivery so there are a lot of options for substitutes. The bargaining power of buyers is high there are many options for the development of new online services in the UK due to the increasing use of the Internet. Several consumers are bound to the takeaway food business and can change according to the number of competitors. Rivalry among existing competitors is high as there is a chance of new companies entering the market as it takes less budget to enter the market.
Level of competitiveness
The bargaining power of supplies is medium in the takeaway business as there are fewer competitors in the current situation. Only three major takeaway businesses in the UK can be named Uber Eats, Just Eat and Deliveroo. The bargaining power of suppliers is having very less choices.
The threat of substitute products is high as it provides a variety of takeaway businesses. There is a possibility of a new entrance so in the coming year's threat will increase effectively. currently, there are three major companies so the threat of substitutes is possibly high so companies need to grab their consumer with effective facilities.
The bargaining power of buyers is high as the consumers have a chance to switch their buying process. Buyers have a substitute for two different companies and some small firms have also entered the market which has increased the size of buyers purchasing limit.
The threat of new entrants is high because the cost of entering the market is low compared to other businesses. Online business has been supported with cheaper internet facilities which have been introduced during the pandemic situation. Internet facility was provided at a cheaper rate during the covid situation and takeaway business needs internet support to enter the market. This requires very less investment, the investment will be invested in only a few governmental papers works which include procurement policies and procedures needed for the establishment of the company.
Report 2 - Economic Impact Of “Working From Home”
Lockdown on business practices
Lockdown has been challenging for every business process and this has many side effects such as consumers' demand is not been fulfilled by businesses. This has led to various kinds of issues such as labour shortage surging inflation and uncertainty of sales and various obstacles.
Issues regarding sales investment and employment
Business downfall has been noticed during March 2020 the sales dropped up to 30% and then there was a gradual increase in sales in the coming m months. The next variant of the pandemic has also affected many businesses there was a decrement in sales in the quarterly months of 2021. The decrement was observed as follows 4% decrement in the first quarter of 2021, a 6% decrease during the fourth quarter of 2021 and a 7% decrease in the third quarter of 2021 (Fairlie and Fossen, 2022). This was due to the second variant of corona named omicron. There was a huge fall in employment during the pandemic it was estimated that the employment rate fell slower as compared to sales. There was a 9% fall in the employment rate during the third quarter of 2020. The government has implemented various programs or supporting employees in terms of job retention. The government has implemented “CJRS (Coronavirus Job Retention Scheme)” (Kalogiannidis, 2020). The investment has also been noticed to have a remarkable decrement as compared to sales. It was noticed to have decreased by 6% in 2020. Labour shortage, as well as the supply chain, has affected the business. Over 13% of non-labour costs in overall business and 20% of non-labour costs disruption was in the manufacturing sector.
Advantages and disadvantages of working from home
Advantages of working from home in IT industries
IT industries saved various financial aspects such as rental costs, electricity costs and different aspects such as cleaning and material cost. It was a benefit for the company in terms of productivity where many companies have to face the loss covid19 the IT industry has increased productivity (Saltiel, 2020). This has helped the business in cost management systems.
Employees' health was improved so this has led to less leave for the employees and increased productivity. Employees were also been noticed by webcam. Industries have fulfilled their requirement by analysing their employees by conducting meetings for daily progress reports of individuals.
Working from home provides an independent situation to the employees and helps in generating self-awareness by completing the tasks within the stipulated time with effective motivation. Companies have a chance of hiring an effective and innovative candidate rather than the pressure of hiring local candidates (Howard, and Webster, 2018). This gave a well qualified skilled employee to companies
Disadvantages of working from home in IT industries
One of the major issues of the companies in working from home was less face time. This has affected the management of the employees and cooperation among the employees. Less interaction has increased the failure of the quality of the product because new employees cannot interact frequently with their seniors or the manager. Managing employees were difficult although there were effective technologies for monitoring employees (Savi?, 2020). Communication was also a major issue for the management as there were various issues occurred regarding bandwidth.
The disadvantage of working from home in IT, manufacturing, construction and various industries include diminishing the work-life boundaries that have a bad impact on the organisation. This is because the decorum of the organisation reaching to extinct level.
Loss incurred by the company is that it has to face a lack of skill by employees as they will face an inadequate supply of equipment. Problems are also faced regarding the time taken to resolve technical issues. It needs a lot of time for solving small issues due to the absence physically in the problematic area.
Problems also occur when there is improper alignment of the team has a bad impact on team performance. Employees' loyalty can’t be identified while working from home.
Conclusion
Food takeaway is one of the most efficient businesses in recent times as it provides efficient comforts to the consumers they prefer to order from their destination. The cost of entering is less because the cost of the internet is also less and exploration of the market in terms of advertising and analysing is also effortless. Lockdown has affected business in various ways where employment, sales, investment and supply chain are the major issues faced during a pandemic. Sales have directly affected the revenue of the business and on falling revenue companies terminated huge numbers of employees. Businesses had opted for an innovative aspect of working from home this has not only led businesses to track but also increase productivity and fulfil the damage caused by covid19.
Reference list
Journals
Allen, J., Piecyk, M. and Piotrowska, M., 2018. An analysis of the same-day delivery market and operations in the UK. Technical Report CUED/C-SRF/TR012). Retrieved from http://www. ftc2050. com/reports/ftc2050-2018-Same-day_delivery_market_UK. pdf. Doi: http://www.ftc2050.com/reports/ftc2050-2018-Same-day_delivery_market_UK.pdf
Fairlie, R. and Fossen, F.M., 2022. The early impacts of the COVID-19 pandemic on business sales. Small Business Economics, 58(4), pp.1853-1864. Doi: https://link.springer.com/article/10.1007/s11187-021-00479-4
Hishamuddin, N.S., 2019. Understanding the growth of takeaway food apps in the UK: A supplier and consumer perspective. Doi: https://ore.exeter.ac.uk/repository/handle/10871/39180
Howard, M.B. and Webster, K., 2018. Circular business advantage: what organisations need to know. Doi: https://ore.exeter.ac.uk/repository/bitstream/handle/10871/37427/CBA%20article_EMF_final_v3.pdf?sequence=2
Kalogiannidis, S., 2020. Covid impact on small business. International Journal of Social Science and Economics Invention, 6(12), p.387. Doi: https://www.researchgate.net/profile/Stavros-Kalogiannidis/publication/347524972_Covid_Impact_on_Small_Business/links/5fe101a0299bf14088331a61/Covid-Impact-on-Small-Business.pdf
Mason, K.E., Pearce, N. and Cummins, S., 2020. Do neighbourhood characteristics act together to influence BMI? A cross-sectional study of urban parks and takeaway/fast-food stores as modifiers of the effect of physical activity facilities. Social Science & Medicine, 261, p.113242. Doi: https://livrepository.liverpool.ac.uk/3096450/1/Mason_SSM2020_journal-preproof.pdf
Pang, X., Shang, Y. and Song, J., 2022, March. An Analysis of Deliveroo’s Operation Strategy and Food Takeaway Industry. In 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) (pp. 142-155). Atlantis Press. Doi: https://www.atlantis-press.com/article/125971694.pdf
Saltiel, F., 2020. Who can work from home in developing countries. covid Economics, 7(2020), pp.104-118. Doi: https://cepr.org/system/files/publication-files/101358-covid_economics_issue_6.pdf#page=108
Savi?, D., 2020. COVID-19 and work from home: Digital transformation of the workforce. Grey Journal (TGJ), 16(2), pp.101-104. Doi: https://dobrica.savic.ca/pubs/TGJ_V16_N2_Summer_2020_DS_article.pdf
