Impacts of Innovation and Technology on Business Environment - A Case Study of TUI Plc

This article discusses the impacts of innovation and technology on the business environment, focusing on a case study of TUI Plc. It explores how new technologies influence management and decision-making, and emphasizes the importance of corporate social responsibility. The study also compares sales and profit before and after the implementation of new technologies.

Business Environment

Executive Summary
As per the above-mentioned article, it outlines the inner and also environmental events
compared to market factors that affect the strategic decision. In this study, consider the new
technologies that influence the management of the organization and make intelligent decisions.
In addition to corporate governance, it includes a set of partnerships between a property manager
and other interested parties. In industry, corporate social responsibility plays a pivotal role and
helps to build prosperity for a prolonged duration. This study is based on the TUI Plc which
carries out financial sector operations.

Contents
Executive Summary.....................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
TASK 1..........................................................................................................................................................4
1. Impacts of innovation as well as technology.......................................................................................4
Innovation and technology contributes in economic growth a country..................................................5
Business organizations use new technology in their operations.............................................................5
Brief overview of company......................................................................................................................6
New technologies used by TUI Plc...........................................................................................................6
Compare sales and profit.........................................................................................................................6
TASK 2..........................................................................................................................................................7
Corporate social responsibility and its importance for TUI PLC...............................................................7
Archie Carroll’s (1991) CSR model...........................................................................................................9
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Business environment is linked to internally and externally variable that positive or negative
affects a company. That's a combination of local and global variables that can be used to ensure
an efficient market role. The financial position of a business organization, that also enables gain
market share, depends on its status and operations (Aithal, 2016). For business organizations,
this is crucial to concentrate on such a component and take steps to solve the difficulties.
Throughout the market world there are several variables that can affect the business results. This
report based on the TUI plc which is a global English-German travel industry business based in
Hanover, Germany. It is the country's leading recreational, recreation and entertainment
business, with tour operators, hotels, airlines, fishing boats and retail outlets. This report is
divided into two parts, one is influence of technological innovation and the second is covered in
this document on CSR (Corporate Social Responsibilities).
TASK 1
1. Impacts of innovation as well as technology.
Concept of innovation and technology
Innovation is the mechanism that is used to change the goods or more efficient emerging
technology to build something unique. In other sentences, innovation is seen as a change
implementation that encourages investors to consume items / solutions toward either new
existence or increased focus on consumers. This is a marketing strategy that corporate enterprise
adopts by successfully embracing the climate conditions. By embracing innovation and new
technologies a leader can quickly achieve its organizational mission.
Technology plays a main role in the corporate sector as new technology tends to make the
job simple and seamless by minimizing organizational costs that helps to boost a nation's
economic situation and also a corporation. Anytime company launches everything different,
technology seems to be the way to lure employees and improve organization’s profitability by
growing the team's current value. TUI Plc is retail sector business is strongly influenced by
progress and technological advances that have brought a nation and business to a strong
economic place. This management is constantly developing software as per the plan of the
organization or consumer that allows enhancing the market share (Asongu and Odhiambo, 2019).

In implementing the new revolutionary technology, companies are able to conduct
activities in unique ways and increase productivity along with the quality of their main
operations, which decreases total product costs that are to be sold to consumers to satisfy
emotional neediness. Different benefit objectives are measured by innovation, including such
expanding consumer base, reaching growing industry, increasing competitiveness together with
productivity rates. Ultimately, it raises living standards and improves employment for people and
contributes to infrastructure provision which has a positive relationship with economic growth.
Innovation and technology contributes in economic growth a country
By using modern technologies, such organisation management board has introduced drone
delivery to all the customers to supply grocery and food in quick time. The function is to boost
the effectiveness of company while using new innovative technologies to sustain maximum
employment. Shift in economic environment and technology improvement leads to extend the
business borders of TUI PLC to DACH, US, Benelux and then to Nordics. It allows TUI PLC
with a large wide range of computer technology clients and efficiently enhances their business
efficiency (Boshyk, 2016).
Business organizations use new technology in their operations
Innovation can help in becoming competitive and create productivity when applied in any
sector in the most effective way. If the TUI PLC adopts creativity and technological
advancement, it should be understood that it is based on a legitimate concept. Only appreciating
opportunities for creativity will be addressed, and that concept needs to be evaluated in depth.
Innovation has to be implemented mostly on context of long-term or short-term goals that a
business enterprise wishes to achieve. TUI PLC will take the definition of innovation very
seriously into account because engaging in the software development community will make an
invention redundant in a short time. Using this advanced technology, corporate administrators
are able to handle a large number of food packets that require frequent and continuing
distribution. Over 90 per cent of foodstuffs are successfully processed and distributed to the
appropriate person via the electronic machine. Therefore, the organization was effective in
gaining its competitiveness in the market after the introduction of innovation and technology and
made numerous improvements in its operations to meet the changing trends (Burt, Johansson and
Dawson, 2016).

Brief overview of company
TUI, the largest and most successful grocery store chain in Britain, is the capital's favorite.
But underneath the fascia of the out-of-town 'under one roof' TUI Extra, or the pleasant TUI
Metro broad street, lies a brutal billion pound project. TUI and its main retail competitors have
received criticism in latest days for abussing their prominent role and leading to some of the
biggest social and economic issues affecting current world. It included manipulating
smallholders in the UK and around the world and prolonging their substitution with commercial
vegetation types to low salaries and limited worker protections. Jack Cohen started TUI as a
community of street markets in Hackney, London, in 1919. The title of TUI first emerged in
1924, after Cohen bought a shipment of tea from T. E. Stockwell merged those symbols on his
first initial options of surname and the very first TUI store launched in Burnt Oak, Barnet, in
1931. His company flourished exponentially, with over 100 TUI stores around the country by
1939 (Hinkelmann and et.al, 2016).
New technologies used by TUI Plc
This makes activity simple and good by reducing time, cost and relationship-building. If
technology is implemented by management, business organizational leaders targeted potential
consumers with the finest customer satisfaction to help boost business organization revenue and
development. Innovation helps to be competitive and to gain productivity when applied in any
sector in even the most suitable way. Although TUI PLC adopts development and creativity
growth, it must be regarded as focused on a legitimate concept.
Compare sales and profit
As commercial business adopts new and improved technologies with creativity, they are
more gained by optimizing selling prices and income. Technological developments enhance the
output and also the productivity which leads to a reduction of different products delivery
charges. At the TUI plc apply the new technologies of new delivery system that helps to
business. There are analyzing the revenues and net profit of company before new technology and
after new technology.

The above tables characterizes that from 2016 to 2019, there was an rise in TUI Plc's revenue
and income after implementation of the innovations. In 2016, the organization received £ 9251
income, in 2017, £9776 revenue, in 2018, £10172 income, in 2019, £10581 income. However, it
reflected in an rise in company's company income in 2016, a profit of £248, a profit of £273 in
2017, a profit of £398 in 2018 and a benefit of £409 in 2019. Previously, the company used
standard means to arrange and distribute messages and parcels which took more days to execute
and culminated in existing customers decline. But it has experienced tremendous growth since
acceptance of the technological advancements. Depending on the biggest advances, more
innovations need to be embraced by the organization so how they can also increase profits and
expand to enormous proportions (Kuzmich, Almabekova and Antosik, 2018).
TASK 2
Corporate social responsibility and its importance for TUI PLC
Corporate governance: It can be characterized as the mixture of multiple kinds of rules,
legislation and procedures that all company operations are needed to routinely carry out
company processes. If businesses are unable to cooperate with all federal regulations then this
will results in intervention by governmental agencies in business process. In other sentences, the
law which helps in controlling business owners can be described. It is also recognized as the
factors that could affect both internally and externally interests of the investors. It primarily
advises organizations like TUI to ensure that they have responsible, open and safe strategy
includes such that all activities can be routinely carried out.
Corporate social responsibility: It can be described as the company's obligation for
community that manages to make a proper appearance in societal head. All businesses are
expected to contribute to current societal wellbeing, which would be advantageous to the
implementation of company. It allows businesses like TUI to ensure that their business

operations are conducted properly plays an essential role in community growth with the
assistance of politics and citizens. All domestic and international corporations are expected to
invest a fixed proportion of income on the creation of society as per laws and regulations. It also
helps to achieve corporate objectives by building a good manufacturing process with the aid of
management programs for the growth and welfare of the community.
History of corporate governance in UK
The definition of corporate governance was introduced 20 years ago and its primary
function is to direct all companies listed in carrying out their operations in compliance with
legislation, legislation and regulatory. Today for decades, not only would it be mandatory for
companies, and it also guides, supports, colleges as well as other organizations so that they might
routinely undertake all of the procedures. Through time this has become the key aspect that
business organisations need to concentrate on so that quality, protection, integrity and disclosure
practices can be guaranteed. Of instance, corporations like TUI are often expected to carry out
their activities according to the laws and rules because then corporate governance standards can
be met (Lam and Wong, 2018).
Importance of CSR in context of TUI Plc
This is very essential for all companies committed to corporate social responsibility
because it can have extra advantages including such positive picture of the company. For TUI its
meaning is as tries to follow:
Enhancing the brand image: TUI should be able to create a positive consumer reputation by
committing to CSR. Achieving lengthy-term sustainability would be good for the company, and
would also boost earnings and sales for the company.
Increased brand visibility and popularity: it is very business organizations like TUI to commit
to corporate social responsibility initiatives in order to draw attention and appreciation of the
brand. A good reputation in the marketplace could be built with both the aid of that it would
allow businesses to obtain advantages.
Better competitive advantage: Corporate social responsibility is also very important for
businesses to gain market edge as it tends to promote a strong picture of business in consumers '

minds. This also tends to draw a significant volume of sales contributing to higher sales and
earnings. Use these strengths to comparative advantage could be attained by TUI Plc.
Improve customer engagement: When organisation such as TUI commits to CSR practices
however this performance in a positive brand profile, that is also helpful for enhancing brand
awareness. In order to accomplish this benefit, engaging in the programs that are carried out for
CSR purposes is crucial for a company (Machmud and Sidharta, 2016).
Archie Carroll’s (1991) CSR model
Archie Carroll's Model: It can be described as a model that guides companies to evaluate
about using CSR and the motivations for concentrating on it. The biggest advantage about this is
that it makes organizations manage these tactics that may enable them produce larger salary.
The concept of Archie Carroll is also implemented by TUI's manager to manage a
difference in the practices of corporate social responsibility. Organization uses rising
technological innovations to meet consumer needs, in order to attain greater income. The
primary aim of the business is to generate profits that help to actually execute all company
processes (Vera-Baquero, Colomo-Palacios and Molloy, 2016). By concentrating on it the
produce virtually its corporate dimension. Since overseeing it, seek to ensure that all the
activities that the organization does are legitimate accounting in compliance with legislation,

laws and guidelines. The business assumes legal obligation for this reason (Perić, Vitezić and
Mekinc, 2016).
There are different aspects of it that could be explained with this system's support from
Hierarchy. All the components are as follows:
Economy Responsibility: The dimension directs customer to spend priority to their earnings. It
shows that a business can survive on the market for quite some time in the potential by
competitive returns.
Legal responsibility: TUI's management wants to ensure that if all the business operations it
conducts are moral or not during fulfilling the legal duty. Efficient approaches which are
advantageous for business expansion are designed for this reason. Through actually listening to
this task activity is carried out in an acceptable way. The last step of the process is administrative
responsibilities requiring top performance of the firm to ensure which they contribute to the
growth of society (Ricciardi, Zardini and Rossignoli, 2016).
Ethical responsibility: This directs people to implement their business practices in an ethical
way. This duty directs the businesses to carry out volunteer activities. Ethical responsibilities
enable the customer to guarantee proper behaviour of its management and performance. It is
important for TUI PLC to obey ethics when conducting the practices to provide consumer
services in the country.
Philanthropic responsibilities: The philanthropic responsibility of the Company requires
mandatory or contracted services and client behaviour. Voluntary work is not really a formal
responsibility, but society currently needs a more direct engagement by the organization. The
size and extent of these processes are voluntary, and are driven by the desire of corporations to
participate in an activity which is not generally performed by corporations in an abstract way.
Now TUI executives rely on all aspects of this framework and they make absolutely sure
which their company is effective with the aid of it. A fixed amount of income is invested in the
social development for the objectives of enhancing the business which is helpful and for
formation of a favourable economic picture. TUI actually invests 2 percent of its sales on social
growth and draws vast numbers of consumers to it in order to raise sales. The TUI Plc is

applying this model to establish all the requirements in order to have all the relevant outcomes
within that length of time. This approach assists in the successful execution of their social
obligation. For extended periods of time it offers advantages for community and works socially
and also legally (Salwa and Sudarsan, 2018).
CONCLUSION
The above-mentioned study states that creativity is a strategy that businesses depend on in
order to bring everything new into the media in order to gain a wide range of clients. It is quite
essential for business to charge priority to technical advancement with an intention of making
technology. Organizations can achieve long-term profitability and competitive edge with the aid
of it. Corporate responsibility and leadership are also 2 distinct aspects that companies should
follow even when trying to formulate corporate services techniques since it allows attain
corporate objectives. The targets that could be achieved by concentrating these are maximizing
profits and consumer interaction.

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