Impact of Covid-19 on TUI Group's Internal and External Environment

This report emphasizes on brief understanding of organization's internal and external environment along with the impacts of Covid-19 on an organization. Further, recovery plans and policies of government and their influence have been mentioned in this report.

Business study

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1 ..........................................................................................................................................3
Section – 2 .......................................................................................................................................5
Section 3...........................................................................................................................................7
Section 4...........................................................................................................................................9
CONCLUSION.............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Covid-19 has impacted businesses worldwide drastically. Several measures and policies
are still being taken into consideration by companies and government to take businesses back on
track. This report emphasises on brief understanding of organisation's internal and external
environment along with the impacts of Covid-19 on an organisation. Further, recovery plans and
policies of government and their influence have been mentioned in this report. Due to pandemic,
factors like human resources, organisational culture, structure , objectives which sums up and
comprises Internal business environment are highly impacted. Along with this micro external
business factors like competitors, suppliers, marketers and customers are also no exception to the
impact of Covid-19.(Brauer and et. al., 2019) Huge impact have also been observed on
Technological environment, country's economic conditions, legal and political factors, market
etc. which all together frames macro business environment for an organisation. Forth, in this
report the entire information is being shared in context to TUI group, Headquartered in Hanover,
Germany is the world's leading tourism brand with more than 1600 travel branches plus 300
hotels and well established 6 airlines with the fleet count of 150 air crafts. Founded in 1923, TUI
group has suffered huge loss due to Covid-19, impacting entire business operations of the
company(Cherunilam, F., 2021).
Section 1
 Business overview – TUI Group is a German leisure travel and tourism company. It was
founded in 1923, headquartered in Hanover , Germany. It partially and fully owns several
hotels, airlines.
 Key events – It explains the main events that happened in the organisation on the annual
basis and for which the organisation is famous and known for. TUI group's capital is
increased on October 2021 and January 2021, annual report 2021.(George, R., 2021)
 Services – TUI group provides Hotel and Resorts, cruises and various facilities.
 Business type – TUI group is one of the fastest growing groups among the leading
tourism groups. The range of this broad group owns various and experienced tour
operators, travel agencies, online websites, airlines and aircraft, cruise etc.

 Legal structure – TUI group executive board is consist of six members and executive
committee consist of 11 members, the supervisory board of 20 members.
 Size – TUI group is very broad and vast in size because it operates and provides various
types of activities and facilities like providing hotels, resorts, cruises and aircraft's.
 Annual revenue – Total Revenue of June 2022 is 4,433.20 million and 2,369.20 million
in December 2021.
 Number of employees – Over 77,000 employees work in TUI Group
 Market Share – TUI owns the 2.53 Billion dollar worth market share.
 Sector and industry of operations – TUI operates in tourism and travel industry which
enables it to provide the consumer as per they needed.
 Direct and indirect competitors – Direct competitors of the TUI Group are Kuoni
travels , Barrhead travels, the ultimate travel company, cox and kings, and Thomas cook.
Indirect competitors of the group are transit, and CWT.
 Organisational structure - The TUI group follows functional type of organizational
structure in which the company has to follow everything and every operation has to be
followed as per the structure is suggested by the organisation itself.
 Leadership team – TUI group leadership team consist of Friedrich Joussen as a chief
executive officer senior management since last 9 years, Erik Friemuth as a managing
director, chief marketing officer, and senior management from last 8 years(Gross, A. and
Bristow, R.S., 2022).

Section – 2
Though, TUI group is the leading travel and tourism brand with multiple businesses
worldwide but the disastrous impact of pandemic Covid-19 has shattered the companies each
business segment. The operations and financial loss caused by pandemic has created challenges
for TUI group to get its business back on track. Internal Environment comprises of all those
factors which can be controlled by organization by implementing policies and procedures
accordingly. Such factors and the impact of Covid on such factors is mentioned below in context
to TUI group.(Kwok and et. al., 2022)
Organisational Culture – Organisational culture can be defined as the morals, values,
assumptions, objectives and beliefs that prevails within the workplace of an organisation.
Covid-19 has negatively affected the culture of TUI group as lots of employees lost their
jobs due to absence of business operations. Along with company's assumptions regarding
goals and objectives shattered as result of halt of business operations world wide.(Lu and
et. al., 2022)
Technological Factor – TUI group used advanced technological tools in commencing
their business operations. Most of the digital tools and software used were on subscription
based services. Apart, other technical equipments used by TUI group in handling their
airlines business and travel agencies were rented equipments. As Covid halted entire
business services TUI group faced huge financial cost on such digital tools and
equipments.
Structure of Organisation – TUI group follows Hierarchical organisational structure in
its every business entity. Impact of Covid causes TUI group to dissolve their business
operations as a result of which levels and departments in the organisation suffers loss of
rules and policies to be followed within the hierarchy. As a result of which entire
hierarchical operations disembarked from its actual authority. The impacts of the UK
government’s recovery plan on TUI Group’s internal environment. Government of UK is
immensely aimed in bringing the business of tourism industry back to normal conditions.
As, Tourism and travel contributes to UK's economy at maximum percentage. To
maintain and bring business to normal several plans and policies have been framed and

introduced by government of UK. The impact of such policies on internal environment of
TUI group has been mentioned below -
Advanced Work Culture – Government has introduced plans and policies to create
employment landscape in UK's tourism industry to attract international talent. Such
policies would help TUI groups in on boarding of workforce from multiple countries with
different backgrounds that will bring diverse values, cultures, beliefs form all traditions
making TUI's workforce more diverse and interesting workplace.
Digital Innovation and Connectivity – UK government is highly focused in building
bridges between England tourism and travellers by connecting with them through
advanced digitalised software and mobile applications. Use of applications and software
by TUI group eventually help them in generating digitalised marketing plans to attract
customers in global market.(Nhamo and et. al., 2020)
Improvised Organisational Structure – As Government of UK is specifically
introducing policies in hiring best talent in tourism industry with educational background
in tourism sector. This will lead in establishing smooth and efficient organisational
structure at TUI groups workplaces around the globe. Specifically skilled and
knowledgable employees contributes in creating efficient authoritarian hierarchy along
with supportive and collaborative organisational structure.

Section 3
UK government's recovery plan – The recovery plan of the United Kingdom includes
four chapters. Chapter first defines the framework of the recovery plan in which it
includes the introduction, aims and objectives, approach of delivery, working in
partnership and the tourism sector deal. Chapter two refers to the swift recovery in which
it includes reopening safely, supporting business and stimulating demand. Chapter three
gives a definition about. In this recovery plan the chapter first explains that how all the
implementations are going to be implemented and the aim of the recovery plan is how the
country is going to be recovered from the Covid 19 pandemic effects because the
pandemic came at a crucial time. When the tourism industry was developing on a global
base. Their are a total of six objectives in this plan, first objective is a recovery back to
2019 levels of tourism volume and visitor expenditure. Objective second says that the
government wants to see the benefits shared across every nation and region. Objective
third covers to build back better with a more productive, innovative and resilient tourism
industry. Objective fourth refers to a tourism industry that contributes to the enhancement
and conservation of UK's culture, nature, historical heritage and minimising damages to
the environment. Objective five says that a tourism industry which provides an inclusive
and accessible offer that open to everyone. And finally the objective sixth says an wants
to see UK among the leading European nations for hosting business events. The recovery
plan has effected the micro environment of TUI Group because of these factors.
 Gross Domestic Production (GDP)– It is a measure of the country's output and
production of goods and services. The Economic Analysis Bureau released a quarterly
report on GDP growth and in that report it has mentioned that TUI group has earned more
revenue then the Covid time. And because of that it made a drastic increase in the GDP of
the country. It has effected the GDP of the country as well as increased the company's
revenue.(Springer and et. al., 2019)
 Inflation – It is a major that is interpreted by the economists, investors and consumers. It
affects the purchasing power of the organisation as well as effects the organisation in the
terms of revenue. If the consumer can't be able to buy the products then how will they be
able to afford the extra things that can make their trips and their plans be successful.

Covid 19 impacted the business and tour industry in a very bad way the tourist guides and
others have lost their jobs because in the time of pandemic and the normal public don't
have the money to buy.
 Employment – Covid 19 has affected the employment level on a huge level because of
the pandemic the organisation's have to sort list the employees which can continue their
work with them an whom are extra's. TUI Group has applied this same strategy to cut
down their expenses because there is no business in the market itself.

Section 4
STEEPLE factors – It affects the external factors that will effect the organisation. This
framework pushes the organisation to consider its overall effects that can probably effect the
society.
 Social factor – This factor includes demographic, lifestyle, age group and education
levels. TUI can implement the environmental factor in their organisation.
 Technological factor – This factor states that the technological advancement and the
current trends of technology. When the TUI Group will implement the online payment
technology in their business it will increase the business (Singh, T., 2019).
 Economic factor – This factor includes GDP growth rate, inflation rates, and interest
rates set up by the central banks. TUI Group will defined by the GDP effect and can do
the
 Environmental factor – It includes the type of government that exists and its ideology
that exhibited and the various factors that effects. TUI Group is effected by this because
the temperature and the seasons are not in the favour of the organisation(Svalastog and et.
al., 2022).
 Political factor – Includes the type of government that can effect the policies or can
make and develop new policies. TUI Group is effected by the UK government policy.
 Legal factor – It states that the facts that can probably effect the business by
implementing the new rules in the context of the business.
 Ethical factor - The general code of ethics that must be followed by the organisation
and by the employees of the organization as well. TUI Group follows what kind of
policies in the favour of the consumers. Like is it offering the consumers various type of
offers.

CONCLUSION
This report provided above includes a brief introduction of the aim of the case study,
definition of internal business, micro business environment, macro business environment.
Further includes the overview, size, sector and industry of operations, direct and indirect
competitors, organisational structure and leadership team of the TUI Group. Moreover
explanation of the impacts of covid19 and impacts of the U.K. Government's recovery plan.
Which includes that the impact of UK government recovery plan and the impacts of the Covid 19
on TUI Group's micro environment. Furthermore says that STEEPLE factors which explains the
social, technological, economical, environmental, political, legal, and ethical factors of TUI
Group' operations.

REFERENCES
Books and Journals
Brauer and et. al., 2019. The impact of tourism research. Annals of Tourism Research, 77, pp.64-
78.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
George, R., 2021. Tourism and Hospitality Marketing Planning. In Marketing Tourism and
Hospitality (pp. 149-182). Palgrave Macmillan, Cham.
Gross, A. and Bristow, R.S., 2022. Master Plans and Tourism. In Encyclopedia of Tourism
Management and Marketing. Edward Elgar Publishing.
Kwok and et. al., 2022. COVID-19 implications for tourism: shifts, trends, challenges, and
opportunities. COVID-19 and the Evolving Business Environment in Asia, pp.27-51.
Lu and et. al., 2022. Exploration of new outdoor leisure activities (glamping) during the post-
pandemic era. Tourism Recreation Research, pp.1-19.
Nhamo and et. al., 2020. Tourism economic stimulus packages as a response to COVID-19.
In Counting the cost of COVID-19 on the global tourism industry (pp. 353-374).
Springer and et. al., 2019. Organizational culture and business performance: an empirical
study. International Journal of Economics and Management, 24(2), pp.264-278.
Singh, T., 2019. Macro and Micro Environment.
Svalastog and et. al., 2022. Tourism as a Resource-based Industry: Based on the Work of Sondre
Svalastog. CABI.