Impact of Technology and Innovation on Sales, Growth & Profits of TUI Plc
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This report analyzes the innovation operations of TUI, a leisure travel business organization, and the impact of technology and innovation on its sales, growth, and profits.
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Business Environment - TUI Plc
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INTRODUCTION Innovation is the strategic process through which a business organisation can increase the overall value that its manufactured products provide to the consumers in the public markets. Innovation is of immense importance for a business organisation as innovation can help the business gain a competitive advantage against its competitors and aid the business organisation’s effort to grow and develop its business operations towards increased success in the consumer markets (Advantage, 2020). This report analyses the innovation operations of TUI, which is a leisure travel business organisation that was founded in 2007 and operates from its headquarters in England, UK. TUI specialises in providing leisure travelling and tourism services to the customers and operates in the travel and tourism industry. TUI also has grown on in the travel and tourism industries to possess five European airlines currently, making TUI the possess the largest holiday fleet in the entire Europe. TASK 1 Impact of technology and innovation and its influence on sales, growth & profits of organization TUI Plc is one of the leading and most popular travel and tourism organizations in the world; they provide the best quality services to visitors and their potential consumers which in return increase their sales and profitability rather than before. Along with this key element, there are a lot of more components or factors are available in business world that contribute to increase profit margin and revenue of company rather than before. It can be said that technology is one of the biggest elements that enhance performance level of staff even better and improve business practices in effective manner. Technologies related to marketing activities always put positive impacts on profits, progress and sales of TUI Plc. In recent time, due to advancement and development of digital marketing tools organizations in specific sector grow more and more. For example, with the help ofsocial mediaas computer based marketing technology, organization reach at international level where by gaining attention of new customers they can increase sales more than existing players (Seo and Park, 2018). This technology helps to generate brand awareness in target segment, where many people seek to obtain better services. After generating awareness in market, company can drive potential people
or travel lovers towards their services purchase, which turn into increasing profitability and productivity level. There are ranges of several ways that social media operations can be examined using technology (Abdurrahim, Najib and Djohar, 2019).When TUI use this factor as marketing technology and create a well designed page to generate awareness, management in return generate more revenue when they are successful in their aim. Most of people use it as communication tool, but organization can use it as profit making technique which is useful and beneficial in term of increasing sales and reaching business at global level. This technology facilitates sharing information and offers through building of virtual communities and networks. By designing social media sites or is pages firm can easily gain attention of people and can also communicate with them.Technologies runs human lives in current period, individual become so dependent on technology around them, ranging from tablets and smart phones to computers and laptops that they cannot seem to function within it. Not long ago, buyers had to drive to varied outlets to compare prices and find out a service or product. Emails, websites and applications will effectively help to increase profit and sales of company. For instance, mobile app is one of the most popular technologies in whole world; many consumers use this to get information about travel or tour package as well as accommodation services. Along with above technology,search enginesalso considered as advanced technology that helps to increase overall business growth and profitability. It is web based technology that enables consumers to TUI and other people who seek to obtain to locate data on World Wide Web. Organization marketing team can create a page on most popular search engines like Google and Yahoo, where by providing all information about its business and consumers satisfaction services can drive people towards them which is quite beneficial in terms of increasing profit and others things. It makes finding easier for travel lovers and travellers who love to enjoy their lives by gather information and experience beauty of nature. After gathering data about TUI services designed especially for consumers, individual drive towards them. It can be said that search engine optimization is a powerful and effective way to drive consumers and rank without paying for advertisement while SEM in activity of marketing TUI Plc business and services through search engines to enhance conversions.
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Above two technologies are related to marketing which help group of workers to be more efficient in acquisition and retention of travellers. For example, by utilizing LinkedIn and Facebook advertisement to target a particular target market, company can tailor their marketing message to that specific persona; enhancing business opportunities of engagement. Furthermore, itanalysedthatbusinessormarketingtechnologiesaidscompanytoimprovetheir communication procedures and it will make consumers happy. Firm by using technologies for marketing purpose and other can increase their sales and profitability. By reaching target market company can retain as well as attract people who are able to pay after obtaining appropriate satisfaction and also promote business which is also beneficial in every aspects. TUI being one of the best company within hospitality and tourism industry aims to bring on diverse paradigms of innovation among business avenues where the new technologyand various innovation goals are widely strongonto new productivity levels along with analysis of best consumer preferences. Innovation has become one of the best metrics within functional goals where high synergy of operational advancement has beenwidely growing on with new functional efficiency and development of wide innovation among business paradigms (Hall and Williams,2019). TUI uses various digital marketing platforms and new high-tech machinesfor stronger innovative promotional goals within businesses and to harness creativity among diverse goals andyielding onto new levels scenarios. There has been variousnew innovative roles analysed with wider continuous efficiency demanded among consumer preferences where there arewider demands to pool on new profit goals, wider goals of promotion synergy and wider functional advancement within the marketing fundamentals. The marketing factors of hospitality and tourism company has been widely growing to bring on rapid development, newquest for widertechnicalpromotionalscaleservices (Martínez-Pérez Elche and García-Villaverde, 2019). The innovation impact within TUI company sales, productivity within growth and businessescan be analysedonto metrics where wider new digital marketing is focused and sued to reach global customers and for regaining stronger demands among business avenues where there is wide demands. There is high leverage focus onto how best media tools are used on platforms such as YouTube, Facebook and various other social media
channels to promote wider goals and technical exploration among business avenues. There has been wide rise coming on among global commercial clients for booking their holidays within TUI company services, which enables us to analyse how wide growth and new keen synergy of innovation is most important within competitive business world. There is new working synergy formed when innovation is strong among company levels andalsotherearemanycommunicativeplatformsforconsumersfromglobal hemispheres which makes wider technical reach within development.This has been profoundly impacting TUI marketing with latest marketing techniques for profoundly impacting new reflective wider innovation demandswhere it has become one of the latest brand for reaching wider consumers within various factors ofservices and widely also developing new end goals of structured marketing. Impacts ofinnovation has been strongly focusing among competitive world within hospitality industry where there are wide new innovation channels coming on through which brand aims to be one of the best bran offering best innovative, fast, creative services and for widely growing onto consumer demands within best determinants onto new synergy goals. These can be understood as best parameters of growth functional roles within business growth and margins of productivity within TUI management, leverage new quest goalsof stronger functional marketing channels along with reflective demands of consumers from world levels. People have been easily able to contact with company services, website access for booking their travels and stays based on their preferences and wider demands onto which new synergy operations can be formulated for long term functional development. The TUI company has beenwidely also gaining stronger space among business avenues demands for best consumer services and larger demands among consumersworld where there is always demand for newfunctional demands and high technical development within variousgoals and operations. There has been various levels of new innovation marketing channels coming on among business levels within the TUI business demands where there has been functional demands onto new relative goals and wider functional demands.
TASK 2 TUI’s leadership and management have designed and created a dedicated Corporate Social Responsibility strategies and initiatives for the business organisation to achieve in order to become more responsible for the operations and functions conducted by TUI. The CSR strategies and initiatives of TUI are of immense importance for the following reasons: Brand:One of the most important and major significance that CSR initiatives of TUI have is that they showcase the travel and tourism business organisation to the public in a positive limelight, highlighting to the consumers that TUI brand is a responsible business organisation that not exclusively cares for generating profits and effectively servicing the needs,requirementsandneedsoftheircustomers,butthebrandofTUIisalso responsible towards improving and enhancing the overall social lifestyle and addressing the social problems that are present in the local societies of their customers (Wang and et.al., 2016). Such CSR initiatives are important because they showcase the business organisation to the public in a positive limelight, allowing for the business organisation to possess increased brand awareness, value and reputation metrics, which also provides TUI with a competitive advantage against their competitors in the travel and tourism industry and makes it significantly easier for the business organisation to acquire new customers as a direct result of their increased brand awareness, reputation and value metrics. Cost Savings:As the CSR initiatives require TUI to make the most optimum and efficientuseoftheiravailableorganisationalresourcesinorderforthebusiness organisation to reduce its losses and operational wastages, in an effort to decrease the negative impact that the business’s operations have on the external environment, this results in TUI being able to conduct its operations much more efficiently, allowing for the business organisation to save organisational resources that would we wasted if not for their CSR initiatives and decrease the overall operational costs of the operations and functions of TUI, making the operationsof the business organisation much more profitable in the consumer markets. Marketing:The CSR initiatives of TUI are also important as they are consistently showcased in magazines and online articles, showing that the business organisation is tryingitsbesttoreducethenegativeimpactthattheoperationsofthebusiness
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organisation can have on the external environments. This allows for the business organisation and its products and services to be marketed to a very large section of the population, at no additional costs. As the consumers get to know of the operations and functions of TUI through their CSR initiatives, this increases their interest in TUI and its manufactured services, in order to engage in a financial transaction with the business organisation (Wang and Sarkis, 2017). This enhanced marketing is highly beneficial for TUI as through its CSR operations, it becomes easier for the business organisation to acquire new customers in the external travel and tourism industries and conduct their operations in a successful manner. EmployeeMotivation:The CSR initiativesandstrategiesof TUI are also highly important and significant as these allow for the business’s employees and workforce to operate with increased motivation and job satisfaction metrics, as the employees know that their individual operations and functions within TUI all contribute towards the CSR initiatives of the business organisation where they help towards addressing the most important social issues and problems in the external environments, many of which were created in part due to the contribution of TUI’s operations. This allows for the employees of TUI to have high motivation and job satisfaction attributes, allowing for them to conduct their daily operations in a much more productive and standardised manner. Competitive Advantage:Another major significance of CSR initiatives and strategies within TUI relate to the ability of such initiatives and strategies to provide TUI with a sustained competitive advantage against their perceived rival business organisations within the travel and tourism industry of UK. This competitive advantage is of immense importance for TUI as through such a competitive advantage, the business organisation can easily increase its overall customers serviced in the consumer markets, increase its operational productivity through which its overall profit margins can also be effectively improved and enhanced (Maqbool and Zameer,2018). The competitiveadvantage provided to TUI on account of their CSR initiatives and strategies contributes immensely towards the business organisationachieving its overall mission, objectives and vision within the travel and tourism industry. Carroll’s Model of CSR
Though the current CSR initiatives and strategies of TUI within the travel and tourism industry are satisfactory, its CSR strategies and in initiatives can be further improved and enhanced in order to effectively make the operations of the business organisation more socially accountable. This can be done by applying the strategic Carroll’s pyramid model of Corporate Social Responsibility, which includes 4 main elements on the external society, which TUI has to be accountable towards as part of their CSR initiatives to be increasingly productive and successful. The four elements of the Carroll’s pyramid model of CSR are as follows: Economic Responsibility:As per the Carroll’s model of CSR, TUI’s CSR strategies and initiatives are required to make the businessorganisation responsible for the products and services that it manufactures within the travel and tourism industry of UK, with these manufactured goods and services of TUI being capable of providing the customers of UK with increased levels of value in addition to satisfying their consumer needs and requirements (Freeman and Dmytriyev, 2017). Only when the CSR initiatives of TUI incorporate their economic responsibility can the operations of the business organising become sustainable for the future. Legal Responsibility:The Carroll’s model of CSR also holds TUI responsible towards all the legally mandated regulations and legislations that business organization is mandated to adhere to by the governing authorities of UK. The operations of TUI can be sustainable for the future only when the business organisation embraces its legal responsibilities. Ethical Responsibility:Another major component of the Carroll’s CSR model relates to the business organisation TUI eliminating all operational process and practices of the business that might be deemed as unethical or immoral (Adnan, Hay and van Staden,
2018). All operationalpracticesof TUI thatcannot satisfy the moral and ethical requirements and expectations of their customers in the travel and tourism industry are required to be eliminated from TUI’s, in order for their business operations to become sustainable for the future. Philanthropic Responsibility:The final responsibility of TUI as per the Carroll’s model of CSR relates to the philanthropic responsibility of TUI towards the local communities in which the business organization operates in. TUI is required to provide and donate financialresources,communityservicestothecitizensthatarepartofthe underprivileged sections of the UK population. CONCLUSION Thereportindetailconcludesvariousaspectsofbusinessenvironmentwithin competitive global industry where there are various paradigms within tourism and hospitality industry,in which functioning of TUI company is explained. The report at the first task has concluded how innovation and technology has become one of the most important integral part within TUI functional goals and new reflective business scenario, This can be understood further with conclusion of how impacts within growth, profit and sales of company structure has been progressively growing among company services and higher consumers goodwill goals. Report also analyses various aspects of CSR, social responsibility factors where TUI company aims to bring onnew gaols and wider functional demandswithin new functional goals. Report also concludes Archie Carroll’s (1991) CSR model and how it hasconcluded to be one of the best innovative model for technical development, exploration of new scales services and strong business positioning elements within goodwill metrics (Sigala, Rahimi and Thelwall, 2019).
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REFERENCES Book and Journals Abdurrahim, M.S., Najib, M. and Djohar, S., 2019. Development of aisas model to see the effect of tourism destination in social media.Jurnal Aplikasi Manajemen.17(1). pp.133-143. Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate governance on corporate social responsibility disclosure: A cross country analysis. Journal of Cleaner Production.198. pp.820-832. Advantage, C., 2020. Corporate Social Responsibility.CSR and Socially Responsible Investing Strategies in Transitioning and Emerging Economies, p.65. Freeman, R.E. and Dmytriyev, S., 2017. Corporate social responsibility and stakeholder theory: Learning from each other.Symphonya. Emerging Issues in Management. (1). pp.7-15. Hall, C. M. and Williams, A. M., 2019.Tourism and innovation. Routledge. Maqbool, S. and Zameer, M.N., 2018. Corporate social responsibility and financial performance: An empirical analysis of Indian banks.Future Business Journal.4(1). pp.84-93. Martínez-Pérez,Á.,Elche,D.andGarcía-Villaverde,P.M.,2019.Fromdiversityof interorganizational relationships to radical innovation in tourism destination: The role of knowledge exploration.Journal of destination marketing & management,11, pp.80-88. Seo, E.J. and Park, J.W., 2018. A study on the effects of social media marketing activities on brand equity and customer response in the airline industry.Journal of Air Transport Management.66. pp.36-41. Sigala, M., Rahimi, R. and Thelwall, M., 2019.Big Data and Innovation in Tourism, Travel, and Hospitality. Springer. Wang, H. and et.al., 2016. Corporate social responsibility: An overview and new research directions: Thematic issue on corporate social responsibility. Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and financial performance.Journal of Cleaner Production.162. pp.1607-1616.