Analysis on Thomas cook Report 2022

Running head: ANALYSIS ON THOMAS COOK
Programme Title
Module Code and Title
Analysis on Thomas Cook
Student Details

ANALYSIS ON THOMAS COOK1
Executive Summary
The report discussed the probable causes of failure in Thomas Cook Company. From report, it is
found that both the macro and microeconomic factors play a vital role in influencing the business
in both positive and negative ways. From the SWOT analysis, it is found the company has more
weaknesses and less strength and opportunity. The political reason that increased the chances of
failure of the company is due to the Brexit. The company has not been innovative enough to
adapt to the new technology for longer period and thus it loses competitiveness gradually move
towards failure. However, it can be avoided by adapting to new technology and not participated
in the merger.

ANALYSIS ON THOMAS COOK2
Table of Contents
Introduction......................................................................................................................................3
Economic impact on business organizations...................................................................................3
Impact of micro and macroeconomic factors on Thomas Cook......................................................5
Background..................................................................................................................................5
Microeconomic Analysis.............................................................................................................5
Macroeconomic analysis.............................................................................................................6
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

ANALYSIS ON THOMAS COOK3
Introduction
Economics and business share strong relationship because a strong economy helps
businesses to grow and alternatively the successful business helps in development of economy.
The total output by all the businesses in an economy is reflected in the gross domestic product. In
addition to that, microeconomic factors like consumer habits and preferences influence
businesses. Therefore, it can be said that the economics significantly influences business. The
report analyses the reasons that causes the failure of Thomas Cook a holiday firm in UK (Dyer
2019). Thus, to make the analysis the report studies the macro and micro economic factors that
might have caused the failure. The report uses the model like PESTEL, SWOT and Porter’s five
forces to understand the different aspect of a business on which it depends and the areas where it
has competitive advantage (Huang 2019). Therefore, the report discusses the economic factors
due to which Tomas Cook shut down its business in the UK.
Economic impact on business organizations
Macroeconomic factors include political, social, environment, technology and legal and
thus PESTEL model has been considered in the analysis. The political factors are factors that
influences the business strategy of an organization (Haseeb et al. 2019). A business need to
follow the government regulations and as well as political sentiment of country so that it can
develop and increase the value of their product to their target customers. For example, if a
political unrest is occurring in a particular part of a country then a tourism company should
develop their product keeping the place out of the list otherwise they will fail. Thus, it is
important keep the political factors in mind before making any strategy. Thus, macroeconomic
factors change, due to many political reasons such as implementation of new policies, change in
government rules and changes in ministries. Environment influences macroeconomic factors