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STRATEGIC BUSINESS
ANALYSIS

BUSINESS ANALYSIS

GROUP LEADER:
SYED ARQAM RAZA
(Internal & external factors, competitive strategy & coordination with resources).

GROUP MEMBERS:
ALQAMA MEHBOOB
(Nature & role of business, Analyzing business problem & function & process of business)
IKRAM-UL-HAQ
(Taxation, role of govt. and legal frame work)
SYED ZEESHAN JAMAL
(Efficiency of resources and Evaluation of strategies)
 TABLE OF CONTENT:

S.NO. CONTENTS PAGE NO.

01 NATURE AND ROLE OF BUSINESS 3

02 ANALYZING BUSINESS PROBLEM 3-5

03 FUNCTION AND PROCESS OF BUSINESS 5-6

04 INTERNAL AND EXTERNAL FACTORS 6-7

05 COMPETITIVE STRATEGY 7-8

06 COORDINATION WITH RESOURCES 8-

07 THE EFFICIENCY OF RESOURCES 8-9

08 EVALUATION OF STRATEGIES 9

09 ROLE OF GOVT. AND LEGAL FRAME WORK 9-10

10 TAXATION 10

NATURE AND ROLE OF BUSINESS:

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Foodpanda is a simple service to order food from a variety of restaurants online. Enjoy
different cuisines and flavours delivered to your door step.

Considering the nature of its business, the company has to consider customer first while
putting everything on second priority. Foodpanda has been seen to prioritize customer over
anything. This is clearly indicated through the strong technology being used by the company
that ensures real-time customer feedback. The company has a dedicated team to deal with the
issues faced by the customers. The team has the only objective which is to keep the customer
happy and not let them such an experience that would break the relationship.

Certain bad experiences with the customers made it clear to the company that the negative
word of mouth can spread like anything in the marketing especially among the exact target
market. The very bad word multiplies exponentially and also because of the latest algorithm
used by social media nowadays, the bad word of mouth actually reaches the target market
faster than any other platform. Thus, the company has been taking customer feedback very
seriously which indicates that Foodpanda has clearly chosen a strategy focusing on customer
cultivation.

Foodpanda focuses on prioritizing to cultivating customers. Being a food lover is all about
seeking out the freshest flavors in the city, and the unforgettable experiences that come with
them. Foodpanda helps our food lovers discover that fresh flavor anywhere they are, whether
that means a healthy salad for a late night at the office, indulgent pizza for a no-fuss supper
party, or bakery savories in the park for a romantic picnic.

The Foodpanda platform offers up to 50% off on some of the most popular Pakistani
restaurants; the most celebrated of these being OPTP, Kababjees, Broadway, Domino's,
McDonald's, Burger Lab, Burger O' Clock and Karachi Biryani. Foodpanda understands
everyone's love for food and is helping make the process of ordering and feasting on meals at
the most crucial time.

Foodpanda ensures the healthy, tasty and unique experience of eating without the hassle of
travelling or prior planning. Foodpanda has become a huge online portal and this has been
possible because of several pricing policies are undertaken by the brand. It has adopted a
value-added pricing policy as it offers quality items for a reasonable price to its customers.
Customers are offered several incentives like discounts and special offers to lure them away
from rival brands. It also makes its services more affordable and ultimately results in more
orders and better revenues for Foodpanda. Foodpanda Convenience, availability of over 1000
restaurants, affordability (minimum basket size is Rs. 50 and no delivery fee).

ANALYZING BUSINESS PROBLEMS:

Heavy Financial Losses:

The business as a whole is not profitable at all. Instead, a huge loss can be seen. This problem
is connected to various other issues. Like, marketing expense promotions offers. They did not
cover their investments. However, it can be assumed that improvement in the major processes
like delivery of food and customer service can increase the overall revenue and also bring
positive change in the financial state of the company.

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Low Loyalty in the Segment

Although Foodpanda has a dedicated team to deal with the issues faced by the customers
whose only objective is to keep the customer happy and not let them such an experience that
would break the relationship. Still Foodpanda loses a customer whenever there is one mistake
regarding customer care or food delivery. As discussed before, restaurant businesses have
been promising absolute customer service and accurate delivery time. However, not a single
business has successfully delivered the exact promised. Thus customers do not remain loyal.

Increasing Rate of Negative Feedback:

Negative feedback can spread like a grassfire. Especially in this this digital era the bad word
of mouth actually reaches the target market faster than any other platform through social
media.

Lacking Complete Market Penetration:

Foodpanda does not cater all areas in a city. This results in losing a fair amount of potential
customers who remain untouched. Also, Foodpanda is only available in 12 cities of Pakistan
including Karachi, Lahore, Islamabad, Rawalpindi, Faisalabad, Multan, Hyderabad, Sialkot,
Peshawar, Sukkur, Murree and Mangla. This keeps a lot of market untapped and costs a lot of
potential revenues

Potential Competition:

Foodpanda’s competitors providing similar applications suggest that growth is limited. They
will have to come up with a strong USP other than giving discounts in order to maintain or
increase their market share. The strategy of acquiring the competitors is not enough if an
equally financially strong competitor enters the market, which in this case is CareemNow.

Lack of consistency:

The customer service all over the country is inconsistent. While customers in Karachi are
very satisfied with Foodpanda’s services, there are some customers in Rawalpindi and
Islamabad who are dissatisfied and do not even use the application.

Excess of Human Capital:

The financial statements from past few years have shown a relatively low profit margin. This
is because the excess of human capital. Foodpanda, since the beginning, was more inclined
towards focusing on technology rather than investing in human capital. But due to the
penetration in Pakistani market, generated the need of more human resources. The Company
has around 300 full-time employees and 7,000 riders in Pakistan which have been largely
acquired over the past 6 months.

Absence of R&D Department

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Foodpanda Corporate office which is in Berlin Germany has a department which mainly
focuses on bringing new technology to the company. The department works very closely with
the IT department to ensure that all the technical aspects are taken into consideration. This
lacks in Pakistan and hence hinders the growth of the business

FUNCTIONS AND BUSINESS PROCESS:

The two primary business processes are:

 Ordering
 Delivering

Online food delivery companies generally try to enrich their services with 4 conveniences.

1. Decision Convenience- making it fast and easy to use.

2. Transaction Convenience- making it fast and easy to pay. for e.g payments via cards,
cash on delivery, paytm accounts or wallets.
3. Benefit Convenience- making it fast and easy to enjoy.
4. Post-benefit convenience-making it fast and easy to re-purchase. For e.g. you can save
your address and payment details, bookmark your favorites to re-order in seconds.

How Foodpanda functions and how it processes:

Customer Find a restaurant

Enter your areas on the home page. Browse from our extensive list of restaurants that deliver
to your area. Pick a restaurant you like and browse its menu.

Order what you want

Build up your meal by choosing from any of your favorite restaurants, browse the menu and
select the items you will like to order. If options are required, e.g pizza toppings, you will be
asked to choose them one you click on an item. Your items will appear on your cart on the
right.

Checkout & Payment

Once you are happy with your order, click on the "ORDER NOW" button and enter your
delivery address. Simply follow the checkout instructions from there.

Foodpanda

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 Receives order from customer and inform to restaurants.

Vendors:
Restaurants receive order from Foodpanda and prepare food for customers.

Delivery:
We will send you an SMS confirming your order and delivery time. Sit back, relax and wait
for piping hot food to be conveniently delivered to you!

Customers:
Customers receive their desired order and enjoy their meal.

INTERNAL AND EXTERNAL FACTORS

 Traditional way to order.

It is about to create trust on online services. We all know the situation and frauds in online, in
start the most difficult task to cater for foodpanda is to make their customers trust on their
services and to make them used to on it. It is only possible through quality services and easy
to use application or website. Customers only trust on what they use to do it means the
traditional way to order they never see the model like foodpanda.

 Traditional way of restaurant operations.

Still some of the vendors in the markets think that foodpanda takes all their money and it only
brings customers to them. So they choose to operate like before.

 Illiteracy in restaurant business.

Vendors never uses any kind of device that let them accept the orders from customers of
different areas. One of the big reasons why restaurants are unable to accept foodpanda.

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  Weather conditions and infrastructure.
In response to The Straits Times' queries, Foodpanda managing director Luc Andreani said
that the company had not predicted the 12 per cent surge in orders as a result of inclement
weather over the past week.It had derived the figure from its advanced algorithm tool, which
allows it to predict the number of orders at a given time.

 Law and order situation.

Robberies and street crimes, a lot of riders do not go in high risk areas for delivery. In the end
hungry customers suffers and always blame foodpanda. Which ultimately affects the business
and image it self.

 Buying power and delivery charges.

Due to the rises in commodities and other factors like petrol prices company have to increase
delivery charges and commissions which although affects the prices of products, If a
customer wants to order a 100 rupees burger he will be going to pay 140 to 170 including
delivery charges which affects the number of orders.

 Open business model and competition.

Foodpanda has the general business model that every one knows. It is because of the trust
they wants to gain to enter in the market. But it will help competitors to analyze the hit points
for foodpanda and they did. Like, foodpapa starts marketing with half of the commission of
what foodpanda is charging per order.

 Vendor Mistakes.
Any thing that vendors do by mistakes like forget to receive order, forget to close the not
available items, forget to read the special instructions or compromises the quality or quantity
of food will directly hit against the image of foodpanda from customers.

 Connectivity
Many areas like PIB colony in Karachi have no signals. Foodpanda riders and customers
suffers there to contact or to convey any type of message in between and the dissatisfaction of
customers leads to the loss to company.

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  Employees Corruption
Employees corruption like create special discount for some time and order for themselves or
to create fake orders and cancel it them let it deliver to foodpanda office is creating a huge
loss in profitability and the loss of vendors as well.

COMPETITIVE STRATEGY:
 Cost leadership:
Operational cost cutting
Travelling expense saving
 Product differentiation:
Variety and availability of different food items and restaurants (product alternative).

COORDINATION WITH RESOURCES

With Partners to create Value.
 Banks and corporate chains.
With Stakeholders to create Differentiation.
 Restaurants
 Brands
 Customers

EFFICIENCY OF RESOURCES
Efficient use of resources refers to the ways using the available resources in an efficient way
to create more with less and to deliver greater value with less input.
Jazz cash
Foodpanda is using Jazz cash app for their payment transaction to reduce risk like snatching.
Through this app rider deposit recovred amount into foodpanda account.
Work from home
When COVID-19 forced companies all over the world to send their employees home to work
virtually, remote work had a big moment.
Covid Outbreak
COVID-19 has had a net positive impact on frequency and spending on online food delivery
and the majority of new users (57%) are likely to use it again.

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Digital Platform (Social Media, Emails etc.)
 Low cost: Marketing and advertising cost is one of the biggest financial burdens that
businesses have to bear.
 Huge return on investment
 Easy to measure
 Easy to adjust
 Brand development
 Easy to share
 Global

EVALUATION OF STRATEGIES

Divided markets into sub regions

Divided markets into sub regions helps marketers to be more efficient in terms of time,
money and other resources. Market segmentation allows companies to learn about their
customers. They gain a better understanding of customer's needs and wants and therefore can
tailor campaigns to customer segments most likely to purchase products.
Planning to procure vegetables and fruits from farmers
Planning to procure vegetables and fruits from farmers to give to increase their profits and
facilitate to its users in terms of money.
Computerized slip
Foodpanda is using computerized order slip to prevent mistakes in order delivery.

ROLE OF GOVERNMENT & LEGAL FRAMEWORK

SECP (Security exchange commission of Pakistan)

Companies Ordinance 1984 "An Ordinance to consolidate and amend the law relating to
companies and certain other associations". It encompasses all legal rules and regulations for
businesses registered with Security and Exchange Commission of Pakistan (SECP) and is
enforced by that agency.
The Ordinance also provides legal protection and regulates the business community of
Pakistan, with the SECP keeping a close check on financial and corporate entities to insure
stakeholder’s interest.
Foodpanda is also registered with SECP.
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FIA (Federal Investigation Agency)
The FIA's main goal and priority is to protect the nation's interests and defend Pakistan, to
uphold and enforce criminal law, and law enforcement in the country.
Cyber Crime Circle is the department of FIA which protects organizations from cybercrime,
being a registered service providing company foodpanda is also in FIA umbrella and secure
from frauds and cybercrimes.

TAXATION
Tax collection from customers on behalf of restaurants.

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