Module Name

[ Business and Business Environment]

Submitted To:

[ Daw Ei Mon Soe]

Submitted By:

[ ShweYiTunSanAung]

[ Student ID -2022B2746]
Table of Contents
Private Sector..........................................................................................................................5

Public Sector...........................................................................................................................5

Voluntary Sector.....................................................................................................................5

Foodpanda Company Background...........................................................................................6

Mission...................................................................................................................................6

Vision......................................................................................................................................6

Objectives...............................................................................................................................6

Stakeholder.............................................................................................................................7

Stakeholder’s interest.............................................................................................................8

Characteristics of Private Limited Company.............................................................................8

The size and scope of a range of different types of organizations............................................9

Organization Size....................................................................................................................9

Competition of Foodpanda....................................................................................................10

Impact of Foodpanda’s size and scope on its objectives.........................................................10

Organization structure of Foodpanda company (Matrix Structure)........................................11

Interrelationship between Departments................................................................................12

Advantages on Matrix Organizational Structure...................................................................13

Disadvantages of Matrix Organizational Structure................................................................13

PESTEL Analysis.....................................................................................................................14

Political.................................................................................................................................14

Economic...............................................................................................................................14

Social....................................................................................................................................14

Technology............................................................................................................................15
Legal.....................................................................................................................................15

Environmental.......................................................................................................................15

Challenges and solutions for Foodpanda...............................................................................15

SWOT Analysis......................................................................................................................16

SWOT analysis for Foodpanda company................................................................................16

Strengths..............................................................................................................................16

Weaknesses..........................................................................................................................16

Opportunities........................................................................................................................17

Threats..................................................................................................................................17

SWOT Matrix........................................................................................................................17

Impact of SWOT analysis on objectives..................................................................................21

References............................................................................................................................22
Private Sector
The economic sector that is controlled by private citizens and companies as
opposed to the government is known as the private sector. With the intention of making
a profit, a private sector company sells goods or services to customers. (Hartill, 2021)

 In the private sector, private persons are fully responsible for controlling and
managing all corporate operations.
 Private sector firms have several options, including private loans, shareholders,
and investment activities.
 Private sector companies and organizations are privately owned by one or more
individuals, business owners, or groups of individuals. (Mehta, 2022)

Public Sector
The public sector is the part of the economy that is controlled by national, state or
provincial, and local governments and provides a variety of governmental services.
(sector, 2015)

 A public sector to serve all section of people in the community.

 Public sector enterprises are liable to the general public for their actions.
 The government makes the primary investment in a public sector enterprise.
(Structures, n.d.)

Voluntary Sector
Organizations that prioritize social effect over financial gain are referred to as the
voluntary sector. It is frequently referred to as the third sector, civil society, or the non-
profit industry. (sector, 2021)

 They are distinct from both the public and private sectors.
 They are truly independent in determining their own course.
 They have social objectives and work to benefit the community. (sector, n.d.)
Foodpanda Company Background

Foodpanda Group is headquartered in Berlin, Germany and is one of the leaders

in online food delivery services worldwide. Its’s parent company is Delivery Hero since
December of 2016 after complete takeover. Currently Foodpanda is present in more
than 40 countries on 5 continents. Foodpanda mainly operates with its business
model to enable customers to easily order their favorite meals over the internet.

Foodpanda has been present in Myanmar from Yangon since January 2020.
Foodpanda offer their services in around 1,000 restaurants and make the services
available to customers in their homes, workplaces and other hotspot locations. The
company currently employs between 201 and 500 permanent employees and has over
7,000 independent contractors as delivery drivers. The user rate has currently reached
over 1 million users now.

Mission
Foodpanda's mission is to provide the perfect mix of global traditional foods to
the customers.

Vision
Foodpanda’s vision is to be known one of the successful food delivery services
and they plan to make food delivery a fast and convenient choice for all food lovers.

Objectives
The objective of Foodpanda is to gain market share in order to maintain its
position as the market leader in the online food ordering sector.
Stakeholder
A stakeholder is an individual, group or organization that is affected by the
outcome of a project or business venture. (Landau, 2022)

Shareholders of Foodpanda, which is also the parent organization of Foodpanda,

Delivery Hero, is one of the stakeholders of Foodpanda and is fully owned by this
Berlin-based company and it has invested into Foodpanda.

Moreover, the stakeholder of Foodpanda includes employees. Foodpanda has

within 200 employees and independent contract riders of over 7,000 altogether in order
to fulfil the delivery requirement well.

And the customers are also the stakeholders of Foodpanda. Foodpanda has an e
-commerce website and its mobile food delivery apps is highly depended on the usage
of customers.

Besides, the business partners of Foodpanda are also the stakeholders. For
example, KFC, Pizza Hut, Café Amazon, Gong Cha, YKKO and so on are the business
partners of Foodpanda. Government is also stakeholder of Foodpanda as they receive
revenue from taxes such as corporation tax, and the income tax of employees.

Stakeholder’s interest
Type of Stakeholder Stakeholder’s interest

Shareholder Profit growth, share price growth,

dividends
Employees Salaries and wages, Job security, Job
satisfaction and motivation
Customers Customer service, reliable quality, value
for money
Business partners Revenues, the safety of goods, the
companys share of the profit and losses
 Government Compliance with law, tax receipts,
accurate data

Characteristics of Private Limited Company

 The liability of shareholders in Foodpanda is limited.
 As a Foodpanda company, the sale of shares to the public is restricted.
 Foodpanda must have at least two shareholders. (company, 2022)

How can being a private limited company benefit Foodpanda’s objective

Being a private limited company can be beneficial to Foodpanda by comparing

with partnership organization and public limited company. By Comparing the partnership
organization and Foodpanda company, when there is no limited liability, the personal
assets of the shareholders will be used to pay the company’s debts if the Foodpanda
has financial difficulties for any reason. If compared to the public company and
Foodpanda, when shares are transfer to the public, Foodpanda will lose management
and control. Foodpanda can accomplish its objectives with being a private limited
company because it makes Foodpanda to expand new cities, partnership with various
international brands and to continue to maintain as a market leader.

The size and scope of a range of different types of organizations

Organization Size

Organization size can be measured in many ways such as, market share, sales

revenue, profit, capital employed etc. (Grzegorzek, 2021)

In Foodpanda, the company is large-size. Because the company has within 200
of employees and over 7,000 delivery riders and partnership agreement with over 8,000
restaurants in 24 cities such as Bagan, Bago, Chaung Thar, Hpa An, Lashio, Mandalay,
Mawlamyine, Meiktila, Monya, Mudon, Naypyitaw, Ngwe Saung, Nyaung-U, Pakokku,
Pathein, Pyay, Pyin Oo Lwin, Taung Gyi, Taungoo, Yangon, Aungpan, Kalaw, Myeik
and Thandwe.

Market share is the percentage of total sales in the market or industry in which
the company operates. (Gordon, 2022)

In order to maintain the market leader in industry, Foodpanda need to expand the
market share to reach all over of cities in Myanmar. There are cities where Foodpanda
needs to expand in Myanmar. They are Sagaing, ShweBo, Aunglan, Sittwe, Bhamo,
Hinthada, Myitkyina and Dawel.

Since Foodpanda is an online food delivery service, it saves the time and efforts
of the customers. By logging in through the website or mobile application, customers
can place meal orders. Those orders are then picked by the Foodpanda riders and be
delivered to customer’s places just in time.

The services include international fast-food brands like KFC, Pizza Hut, Marry
Brown, Gong Cha, Amazon and local restaurants chain and shops like YKKO, Rangoon
Tea House and so on. And Foodpanda also offers grocery shopping by partnering up
with grocery stores like G&G stores, ABC and so on. In addition, foodpanda online
shopping services are available.

Foodpanda is Myanmar ‘s first online-food delivery service which was founded in

2019 and the brand has grown rapidly due to its business strategies and deliver to
customers a wide range of food, groceries more quickly and conveniently. Because of
these factors, Foodpanda is the market leader in the online food delivery service
industry.

Competition of Foodpanda
Every business has competitors in the market. There are other online delivery
services in Myanmar besides Foodpanda. They are Grabfood, Yangon Door2Door,
Uber Eats and Food2U. They are the competitors of Foodpanda. Foodpanda’s
competition level is high because there are many competitors in the market. To
distinguish itself from the competitors, Foodpanda should offers discounts and special
programs on top of being the service with low delivery charges.
Impact of Foodpanda’s size and scope on its objectives
Within its size and scope, Foodpanda can achieve its objectives easily for
expanding its marketing into more cities in Myanmar within its existing market. In order
to expand the market, Foodpanda should partnered with more retailers, wholesalers,
grocery offer services and needed to hire more skillful employees. And Foodpanda
should have a sufficient amount of market share to partner with them. In this way,
Foodpanda will be able to expand the market to the whole part of the country.
 Organization structure of Foodpanda company (Matrix Structure)

CEO

General
Manager

Human Resources Finance Marketing Operation

Manager Manager Manager Manager

Finance Marketing Operation

Human
Team team team
Resources Team
member member

Finance Marketing Operation

Human Resources
Team team team
Team
 An organizational structure outlines how tasks are assigned, coordinated, and
overseen in order to achieve organizational objectives. (structure, 2020)

There are various levels in the Foodpanda company, such as CEO, general
manager, human resources manager, finance manager, marketing manager, operation
manager and so on. The CEO makes the final decision and the managers have
authority and responsibility. Foodpanda has four departments such as human
resources, finance, marketing and operation.

Foodpanda uses a matrix structure. Foodpanda has a large organizational

structure and is decentralized. With decentralization, managers can make decisions
about issues affecting their departments and implement solutions without needing
authorization or permission.

The company has a long chain of command because there are several levels of
management between the top and bottom of the employees under the owner. The span
of control in Foodpanda is narrow because managers supervise only a small number of
subordinates or employees. And the organization structure is tall because there are
many levels of management between the employees and the managers.

Interrelationship between Departments

In foodpanda, the finance department and HR department work together of
paying employee’s wages and paying income tax. HR determined the salaries of the
employees based on their positions and paid by finance. If the Foodpanda financial
department wants to hire staff, the information must be provided to HR and processed
by HR department of Foodpanda. If the finance department employees need to strong
training and development, HR department of Foodpanda will arrange it.

And marketing department and operation department also work together. When
the marketing department promote the brand with various advertisements and
promotional offers, the operation department manage and monitor the operational
processes and activities in order to carry out operational plans and constantly improve
service delivery.
Advantages on Matrix Organizational Structure
The matrix structure improves interdepartmental communication and
collaboration. By allowing different departments to collaborate, the matrix structure
encourages a more open work environment and it makes the organization more
motivate. 

Due to the matrix structure's use of several managers, employees may have the
chance to improve their ability to communicate, interact with others, and learn new
skills. Employees can gain from working outside of a traditional or hierarchical structure
by acquiring new skill sets and useful experience by working with several departments.

The fact that a matrix structure brings together highly skilled team members from
several departments may be its greatest benefit. By doing so, the organization can
make the most of its own resources rather than having to look outside the company for
project team members and experts.

Disadvantages of Matrix Organizational Structure

Decisions that may need to go through both managers may occasionally take
longer to process than in a typical structure due to the nature of the matrix involving
several managers. Additionally, decisions that involve numerous processes, such as in
quality assurance, can be slowed down when the matrix is used in conjunction with
multiple supervisors and team members.

Confusion among managers working on projects that are specified by the matrix
is a common disadvantage of the matrix structure. There may be uncertainty over the
individual managerial duties because the power relationships between the functional
manager and the project manager are not as clearly defined inside the matrix.

In order to make sure that a business functions effectively and achieves its
strategic goals, employee performance tracking is crucial. It might be difficult to monitor
employee performance in a matrix organizational structure.
PESTEL Analysis
A PESTEL analysis is a term for a tool which used to identify the macro
(external) forces facing an enterprise. (analysis, n.d.)

Political
Political instability is present in Myanmar, according to the current circumstances.
But the Foodpanda CEO Jakob Angele look at Myanmar with long-term opportunity in
2023,2025 and so on. So, he acknowledged that Foodpanda will continue to do in
Myanmar. Therefore, the company has positive impact because it can continue to
operate in Myanmar.

Economic
Although Foodpanda continues to operate in Myanmar, currency inflation occurs
according to political instability. So, the company don’t pay full wages to the riders.
Previously the riders received between 500 to 1,000 kyats per delivery but now they are
only offer between 300 to 400 kyats for each delivery. Due to high inflation occurs, this
is a negative impact on the company.

Social
Accompanies by digital age, customers are now relying more and more on
shopping online and having the products delivered. Foodpanda application is easy to
use, convenience, time saving aspect, variety of choices and purchasing process is also
made easy for customers. So, these factors have positive impact on the company.
Technology

As technology advances, foodpanda is using more technologies for application.

With its advanced technology, it enables restaurants to adjust item availability
accordingly and automatically calculates the waiting time based on the queue of the
orders to provide waiting time frame precisely. And competitor’s situations can be
analyzed by doing more market research by using technology. Therefore, these factors
have a positive impact on Foodpanda.

Legal
A company must follow labor laws and safety standards within the legal
framework. On May 1 2021, foodpanda employees held a protest against the company.
Because the company treated badly to employees and it has reduced the amount of
pays delivery drivers for each delivery. If the company has unfair conditions that do not
comply with the labor law again, there is a negative impact on the company and
Foodpanda’s brand name may be damaged.

Environmental
Nowadays, food waste is a major problem of global issue and it has been
estimated one-third of all the food produced is wasted every year. To handle
environmental sustainability challenges in the food delivery industry, Foodpanda
collaborated with regional partners and saved over 900 million pieces of single-use
plastic. By reducing plastic waste for a low-carbon future, the company have a positive
impact on this factor.

Challenges and solutions for Foodpanda

Due to the instability of the situation in the country, foodpanda can face highly
political risks to expand the market. Inflation, the sustained and broad rise in the prices
of goods and services over time, erodes purchasing power. While inflation rate is too
high it can impair the company's long-term performance and employees don't stay
longer in company because the company can't receive the full wages. So, as a
company should reduce unnecessary spend and the company should attract
investments from other companies. While every company do new innovative digital
ways, if Foodpanda’s technology was not strong and effective enough, the competitors
will superior than foodpanda. So, foodpanda should do more advance technologies to
maintain the company.

SWOT Analysis

SWOT analysis is a method of strategic analysis used to evaluate a company's

strengths and weaknesses, opportunities for growth, and threats to the
company. (analysis, n.d.)

SWOT analysis for Foodpanda company

Strengths

o Foodpanda is a convenient online delivery service.

o Easy to use application and it has a wide variety of menu.
o Foodpanda has strong brand image.
o Foodpanda has user-friendly website.
o Foodpanda have a large market share.

Weaknesses
o Foodpanda has not yet covered in all areas in a city.
o Foodpanda can place order only from nearby restaurant.
o Foodpanda is not available in all parts of the country.
o Foodpanda have not technology improvements.
o Foodpanda has quite high commission charges.
Opportunities
o Foodpanda can expand in more areas of country.
o Foodpanda can increase market share.
o Foodpanda can increase customer engagement.
o Foodpanda can joint ventures with different brands.
o Foodpanda can enhance technology.

Threats
o There will be increased potential competitors in the market.
o Economic changes are also a huge threat to the company.
o Ease of going to the nearby restaurant.
o High commission charges may cause damage.

SWOT Matrix
A SWOT matrix is a tool for identifying a company's or individual's strengths,
weaknesses, opportunities, and threats. (SWOT Matrix: Definition, n.d.)

Opportunities Threat
1.Increase customer 1.Ease of going to the
engagement nearby restaurant.

2. Joint ventures with 2.Increase potential

different brands competitors.

3. Enhance technology 3. Economic changes

Strength S1-O1 S1-T1
1.User-friendly Therefore, Foodpanda Although the website is
website. application should easy to use, sometimes the
designed more user- delivery can take too long to
2.Having a large friendly, building their reach. So, people might
market share connection with the tend to go to the nearby
 customers and creating a restaurant instead of getting
3. A convenient customer loyalty with order from Foodpanda.
online delivery them. In this way, Thus, delivery should be
service foodpanda can increase made more faster than
customer loyalty and before and online orders
satisfaction. purchase should do more
smoothly.
S2-O2
Due to this, Foodpanda S2-T2
can be able to join with Although foodpanda have a
different retailers and high market share, there will
brands across the be potential competitors in
country. In this way, the market.So, Foodpanda
Foodpanda can expand should develop innovative
the market. service and penetrate the
market to other cities. By
S3-O3 doing this, Foodpanda can
Being a convenient maintain competitiveness in
delivery service, the market.
Foodpanda can enhance
new forms of technologies S3-T3
on application and Although the Foodpanda is
website that will continue a convenient online delivery
to engage with service, economic volatility
consumers in the digital and changes can damage
economy the performance of
Foodpanda. So, Foodpanda
should give more discounts
and reduce delivery
charges.
Weakness W1-O1 W1-T1
1.High comssion In this, Foodpanda should When the commission
charges. reduce the commission charges are too high, the
charges as much as company can’t get much
2. Not available in possible. So, the profit. Thus, the business
all parts of the company can give new cannot be expanded to
country. innovative services to get other areas. So, people
more engagement with might go to eat in the
3.Technology customers. nearby restaurant.
Therefore, by providing
W2-O2 more promotions and better
Due to this, Foodpanda service, the company can
should expand to other get more profits and
cities by collaborating and increase the volume of
investment with more sales.
restaurants and different
brands. W2-T2
Due to this, the company
W3-O3 should expand the market
In this, by partnering with to all parts of Myanmar. In
other technology and this way, the company can
digital companies, the superior from its
company can upgrade the competitors.
technology.
W3-T3
Due to economic changes,
it may be difficult to expand
the company’s technology.
So, the company should
 save the amount of money
in the bank to avoid these
difficulties.

Impact of SWOT analysis on objectives

Foodpanda is one of the largest food delivery services today. Foodpanda has a
strong brand image due to its parent company. So, the company can give a better
organizational structure, managers, trained employees and a better customer support.
Foodpanda is limited to does not yet covered all areas in a city.

Thus, the company can loss customer loyalty and customers can go to
competitors. Foodpanda have the opportunity to expand to all the cities in Myanmar.
Therefore, by colloborationg with restaurants in all cities, Foodpanda can increase
market share and can reach the company’s objective. The increase of the potential
competitors in the market can become a threat to the company. By expanding the
market faster than competitors, the company can achieve objectives.
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