Impact of Innovation and Technology on Economic Progress and Operations, Sales, and Profits of TUI Plc

This document discusses the impact of innovation and technology on the economic progress of a country and the operations, sales, and profits of TUI Plc. It also explores the significance of corporate social responsibility for TUI Plc and provides an overview of Archie Carroll's Pyramid of CSR.

BUSINESS ENVIRONMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Innovation and technology and their impact on economic progress in country......................3
2. Innovation and technology having an impact on operations, sales and profits.......................4
TASK 2............................................................................................................................................5
1. Significance of corporate social responsibility for TUI plc.....................................................5
2. Archie Carroll’s Pyramid of CSR............................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The operations and functioning which are taking place in business in respect of the
internal and external factors which impact on the functioning has to be analysed so that there
would be better functioning. The business environment of the market has to be well maintained
so that the company will be able to operate effectively. TUI is a tourism organization which was
established in 2007 and now has a number of 54,000 employees working in the organization
currently. The net income of the organization as of 2013 is £63 million but currently the
organization has made a lot of changes so that they can operate better. The changes in
technological and innovation changes which have taken place are going to be discussed in the
further report.
TASK 1
1. Innovation and technology and their impact on economic progress in country
When there are new steps and decisions which have been taken for the services and
products that are known as innovation. The customers in United Kingdom are wanting new
products and services because their expectations in the market are growing which will have to be
provided to them. Innovation is going to get unique identity for the products of the company
which can be used for getting in more customers and making the sales higher for profitability.
Customers always want new in the products and more products so that they can satisfy their
needs which all human beings have and this can be a great advantage for the businesses in the
market to be able to provide it to the right customers.
Technology in business context refers to the data engineering, science and information
which are required in an organization so that the business is able to achieve their goals and
objectives (Lu, Wang and Xu, 2019). Technological changes are very important for the
satisfaction level of the customers which has to be improved upon by the organization so that the
company can benefit from it. Technology can make the company have better productivity and
new ideas will be implemented effectively so that the organization can have higher profitability

in market. Technological changes also get a competitive advantage which is good for the
reputation of the company in the market.
The unemployment rates which were rising in the country are improving which is a very
essential factor for the company. There are going to be better standards of living for the people if
the GDP of the country is improving and the customers who are earning they want vacations or
have to travel for business which is why tourism industry can benefit a lot if there are right
technological and innovative ideas will be used. Technology has helped the underdeveloped
countries in the world develop and make the most from it. The underdeveloped countries want
more tourism so that they can make their economic factors stable and technology can help them
to promote themselves and TUI is helping those countries to be able to achieve their goals.
Higher the technological use in the organization the more company will be able to get a better
economic factor so that there is going to be a better functioning and investments can be made for
the benefit of the people of the country.
Mobile technological changes have made the company be able to attract the right
customers and more information is being passed on by the company and for the company to be
improving the factors upon. The customers want to not travel for bookings but can find it easier
by booking the tickets themselves online so that they do not waste time and have a better
lifestyle for themselves (Alotaibi, 2016). All the details about the travel, hotel, cabs, etc are
available online by mobile technology which is being used the most in the organization for better
operations.
2. Innovation and technology having an impact on operations, sales and profits
TUI travel belongs from the transport industry which is having its headquarters in
England, United Kingdom. There are 54,000 employees working in the organization. It was in
2014 that TUI AG and TUI companies announced for the merge they wanted to do. To get more
experience and higher brand recognition in the market this was the best merge they have done for
the organization. There are good packages which are being provided to the customers so that
there is going to get in the right amount of customers which is going to be very effective
(Saleem, 2017).

There are a lot of new technologies which have been added in tourism industry so that
there would be better functioning. The competition in the market is increasing and using the right
technology the organization is going to have a better functioning and the economic stability is
going to be maintained for a longer run. Artificial intelligence is the new technological
improvement which has come in TUI Plc which would get in a better experience for the
customers of the organization. Artificial intelligence has made the experience of the people better
and the speech and access for the customers has become better which is a great factor for the
company. There are better decisions which are being taken and time management is also present
which a great factor (Blaga, 2018). The control is of the computer on the business which is a
great factor but there is a lot of labour monitoring and controlling as well which TUI Plc has
implemented in the company so that there is a better functioning of the company in the market
There are great opportunities which are present in the market which will have to be
considered so that the company can have better operations and higher profitability. The
organizations in the market have got a huge profitability with the help of technologies which
have come in the market. TUI Plc has gained a lot of profits because they are £470.23 million as
of 2019 now but before they were 281.51million as of 2015. The company is added in London
stock exchange which is a great opportunity for the company to get in more customers and
higher profitability. The company got in changes because the customers wanted a better and
easier way to use these businesses in the market which made it easier for the company by getting
in the needs which they needed.
The information which is discussed in the above report from that it can be concluded that
these changes are very essential in the competitive market which is rising so that there is a good
economic factor. To have a good profit which needs to be invested in these new changes is
required which is going to make the company expand themselves further and make better
decisions which is going to be very helpful (Çera and et.al., 2019).

TASK 2
1. Significance of corporate social responsibility for TUI plc
Corporate governance is the amalgamation of rules, procedures, laws through which
businesses operate and its internal and external system is regulated and controlled. It dictates the
way in which board of directors oversee and govern the organisation. It includes internal and
external factors that impact the interests of organisation’s stakeholders, shareholders, suppliers
and distributors, customers, employees and management. The board of directors creates the
structure for corporate governance and aim at aligning operations and conduct of the business
with its long-term objectives (Governance, 2016). It includes the principles of security,
accountability and transparency and improper governance would lead to collapse of the
organisation and financial losses of stakeholders.
Corporate governance in the UK
The UK is a member of the Commonwealth of Nations, the Queen being the head of the
Commonwealth. In the 19th and 20th centuries, as British empire expanded, the British law was
adopted by many countries. The UK has strongly adhered to corporate governance since Cadbury
in 1992, where a corporate governance committee was set up in 1991 to respond to concerns
regarding standards of financial accountability and reporting. The Greenbury Report in 1995
stated diminishing investor confidence due to scandals of the corporate world which led to the
preparation of code of practices for UK PLCs. The Hampel committee in 1998 suggested the
integration of committees into a single body for corporate governance (Tilba, 2017). The UK
corporate Governance Code of 2018 states certain requirements for organisations like focus upon
governance by aligning values and strategies, board control for whistleblowing, engagement with
stakeholders and workforces, diversity in board, enhanced role of remuneration committees etc.
The corporate environment has come a long way by evolving, improving quality and getting
globally acknowledged. There has been an increased compliance to the Code of Corporate
Governance and its multiple aspects.
Corporate Social Responsibility refers to the organisation’s commitment to direct the
social, economic and environmental impact of its business operations in line with the
expectations of the society (Advantage, 2020). It is a part of the corporate governance of the

company. CSR activities of a company include policies on working with suppliers and partners
who operate ethically, reinvesting profits in the environment, safety and health programmes,
providing funds to charitable organisations and promotion of equality for all genders at executive
level.
Importance of CSR for TUI plc
It is necessary that the tourism companies follows an effective CSR programme as it can
help in building the company’s image and brand. It can help the company in empowering
employees and boost their morale and retain them. The tourism industry is associated with high
energy consumption, environmental pollution and garbage disposal. Tourism companies like TUI
group can effectively address this by making contribution towards sustainability. Currently, TUI
plc adheres to an effective CSR programme through its foundations, sustainability programmes
and CSR activities. TUI Care foundation is working to empower young people around the world
by giving them education, opportunities and training in its institutes like TUI Academy, TUI
Junior Academy and TUI Future fund. TUI sustainability strategies are very effective. The
airlines practice carbon efficiency, the modern cruise fleets reduce carbon emissions by 12
percent and aim to reduce carbon impact of holidays by 10%. Its ships are equipped with
environment friendly liquid gas engine to ensure climate and environmental protection., TUI
invests around €10 million every year to improve positive impacts of tourism and aim to deliver
10 million ‘greener and fairer’ holidays by 2020 making more people benefit from tourism
(Runte, 2019).
2. Archie Carroll’s Pyramid of CSR
The Archie Carroll’s Pyramid of CSR involves various responsibilities associated with
the CSR operations undertake by company. The pyramid project that the CSR responsibilities of
the company are associated with different kinds of responsibilities such as economic
responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. All the
four responsibilities complete the corporate social responsibility fundamentals.

Economic responsibility: The TUI Company within the CSR responsibility metrics where it
focuses to attain wider business objectives economic responsibilities lies among various
parameters where there are wider objectives available within company productive
economic stability. Economic responsibility metrics enable us to analyse the wide importance of
being self economically strong and also produce various new productive objectives for stronger
working levels among keeping shareholders and stakeholders satisfied with new profit paradigms
and for working onto new CSR activities where the business expansion opportunities are
stronger among business avenues. The company does not have to just focus on their profitability
but they also have to get in the right measures according to the external and internal factors
which are going to make the working of the organization even better. The pricing and other
factors of the company have to be taken after analysing the market and the customers so that they
can provide the best at the right price which is going to help the company to have a strong base
for themselves.
Legal responsibility: The legal responsibility also is one of the highly important parameter
within CSR fundamentals where TUI aims to bring on new synergy of operations where legal
formalities to keep strong developed efficiency among legal formal activities. The TUI must
make sure that there is various operations completion where employees must be given best
factors of working infrastructure for all employees and also make sure that legal obligations are
technically satisfied within al services. This will not only productively enhance company
goodwill but also make sure that profits are reached with wide viable focus among all legal
obligations to produce new working goals within CSR (Gennari and Salvioni, 2019).
Ethical responsibility: Corporate social responsibility is also an ethical responsibility of the
organisation. It is the fundamental duty of the company to give back to society whatever it has
taken from the society in order to conduct business operations. Company take plenty of resources
from the society to channelize business operations. In against to whatever the company has taken
from the business organisation society also expects from the business organisation to take some
kind of advantages from the business organisations. Ethical responsibility is all about the
business ethics that all companies must ensure the standard amount of investment in conducting
any of the social responsibility as a part of the corporate social responsibility function (Petrenko
and et.al., 2016). The actions taken under the corporate social responsibility is largely based on

ethics as the company do not get any direct advantages of these actions. Indirectly company get
to polish its brand value and many other things like brand image and reputation for getting in the
right customers, etc. There are different cultures and values which all the customers have and
they have to be followed by the company so that they can make the experience of the customers
even better which is going to help the organization have a stable economic factor.
Philanthropic responsibility: Corporate social responsibility is also further philanthropic
responsibility. This is the moral responsibility of the company to give back whatever it has
earned from the society. In order to earn profits and business objectives companies take all kinds
of support from the society. Once it has entertained profits out of the business operations this
become the responsibility of the company to give back whatever it has taken from the society in
form of some kind of social responsibility. The organization will have to think for the best of the
customers as well so that the company will be able to make the customers be loyal to the
organization and that is going to get in an economic balance and competitive advantage for a
long run in the market.
All the above mentioned responsibilities are a part of the corporate social responsibility.
CONCLUSION
From the above report it can be concluded that it is very essential for businesses to be
able to make a place for themselves in the market so that they can have a strong market base and
profitability. The competition in the market is increasing because of which the businesses will
have to improve so that they can give the best of services and products to the customers which
will make them loyal. There are different factors which have to be considered when there are
changes which are taking place so that the company will be able to function and operate
effectively in the market.

REFERENCES
Books and Journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
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Blaga, P., 2018. Advanced Educational Technologies and Business Environment. Curentul
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Çera, G and et.al., 2019. The effect of business enabling policies, tax treatment, corruption and
political connections on business climate. Acta Polytechnica Hungarica. 16(4). pp.113-
132.
Gennari, F. and Salvioni, D. M., 2019. CSR committees on boards: The impact of the external
country level factors. Journal of Management and Governance. 23(3). pp.759-785.
Governance, C., 2016. Corporate Governance.
Lu, Y., Wang, H. and Xu, X., 2019. ManuService ontology: a product data model for service-
oriented business interactions in a cloud manufacturing environment. Journal of
Intelligent Manufacturing. 30(1). pp.317-334.
Petrenko, O. V. and et.al., 2016. Corporate social responsibility or CEO narcissism? CSR
motivations and organizational performance. Strategic Management Journal. 37(2).
pp.262-279.
Runte, C., 2019. Corporate Social Responsibility Management in tourism business: The impact
of TUI Group and Intrepid Group on low-and middle-income countries.
Saleem, M.A., 2017. The impact of socio-economic factors on small business
success. Geografia-Malaysian Journal of society and space. 8(1).
Tilba, A., 2017. Evolution of UK corporate ownership and control: codification, governance,
transition and context. Routledge.