Impact of Covid-19 on TUI Group's Business Environment: A STEEPLE Analysis

This report analyzes the impact of Covid-19 on TUI Group's business environment through a STEEPLE analysis. It covers the internal and external factors affecting the company, the UK government's recovery plan, and the impact of the pandemic on the micro environment. The report also discusses the importance of maintaining a healthy business environment and suggests ways for TUI Group to expand its business and generate profits.

Case study repot
Business environment

INTRODUCTION
he term business environment signifies the overall scope and horizon of any businessT
organization which has been established and maintaining its e istence by performing its objectivesx
and obligations very business has two dimensions internal and e ternal and the respective. E x
faculties employed to manage both the dimensions hese two vital dimensions of a business are. T
known as business environment usiness environment can be classified into two parts micro. B
business environment and macro business environment which are commonly known as
e ternal environment whereas the internal operations of a business including working conditionx . ,
and all other activities which contributes in running a business falls within the ambit of internal
business environment Micro business environment regulates the input and output process.
which includes the production and supplying process and the employed faculties which manually
e ecutes the process within the organization o look upon all these business activities which is ax . T
part of business environment requires best planning and e ecution here the issues andx . W
disputes arise in operations of a business and its impact on the business performance which goes
beyond control of a company falls in the definition of macro business environment he major. T
factors which affect the business environment are legal challenges business ethics and technical, ,
issues economic and professional conduct he key purpose of this report is to consolidate the, . T
relevant e tract which helps in understanding the main facets of the businessx
environment( Durband, R., 2021) he report will highlight the impact of Covid and other dynamic. T
changes which the organizations have faced during unprecedented pandemic the organization,
taken in this report is the group to support the report in order to analyze the and e amineTUI x
the factors relating to political and socioeconomic which impact on the business during happening
of an uncertain events such as C V D pandemic along with S factorsO I TEEPLE .
SECTION 1
group is a well known public limited enterprise situate in which deals inTUI - UK
hospitality and tourism sector is near to complete its years of establishment as its. TUI 100 ,
foundation was laid down in year at annover and erlin in ermany has developed1993 H B G . TUI
chain of various travel agencies in line of corporate hotel resorts cruises aviation and, , ,
sustainability he e ecutive head of the group is riedrich joussen Dieter etsche is the. T x TUI F , Z
chairman of supervisory board and Sebastian bel is the member of e ecutive board rank, E x , F
Rosenberger manages the team and Sybille Reiss is the R head he economic status of aIT H . T
company as per the preceding year revenue data is billion euros having workforce nearly4.732 ,
employees is a strong entity which direct in competition with companies like holiday50,584 . TUI
travel super market nb travel condor homas cook and many more arlier the company, B , , T . E ,
was ti tled as reussage A as they engaged in mining activitiesP G (George, R., 2021) he company was. T
incorporated in the year as a mining industry which later merged with the coal company1923

late in the year of resently the company is listed at ondon Stock change and1972. P L Ex
rankfurt Stock change is the world s leading travel leisure company which offers variousF Ex . TUI ’
varieties of services such as hotel and resort aviation cruise holiday package etc has, , , , . TUI
maintained the chain which begins from the top level organization in direct connection with bottom
level op management controls the end point of the organization Company follows the strict. T .
policy to maintain the coordination between all levels of management he company has. T
installed its place of operations into distinct regions which is north central and western region3 , , .
n respect of shareholding in the group the major portion of its shares is subscribed by theI TUI ,
private investors which are percent nifirm limited holds the second most shares in the37.5 . U
company which is percent of the market share the other institutional investors are capturing29.9 ,
percent share and the last Sevegroup C and Riu otels S A holding little share among others26 LL H .
percent and percent4.1 2.4 .
SECTION 2
IMPACT OF Covid-19 on company internal business environment
Covid pandemic is the unprecedented event which has disturbed the world order he. T
worldwide lockdown has impacted the business word and has caused the irreparable loss .
specially the tourism industry which had suffered the worst because there was completeE
shutdown and restriction were imposed on travelling Many hotel and travel industries have shut.
down their operations permanently because they could not survive the pandemic phase Many.
people have lost their jobs because of worldwide lockdown was no e ception in this phase. TUI x ;
it has also suffered a lot of challenges and loss which resulted in declined in the operations of the
company and affected the work culture badly he employees of felt the apprehension of. T TUI
losing their job which made them vulnerable and unsecure his has affected the overall. T
foundation of the company negatively and caused chaos in the business environment owever. H ,
the company has managed to survive the pandemic and after the reopening of the market as the
pandemic period over the company without wasting ti me started working on recovering the,
damages began to spend huge money to bring the business back on track again it started. TUI ,
recruiting the fresh candidates with proper training it took ti me money and energy but company, ,
was determined and confidant to reestablished the and recover the loss it had caused during the
pandemic(Troshin.,and et.al 2020).
Impacts of the UK government’s recovery plan on the company internal environment
he government and administration of has left no stone unturned to stop the CovidT UK
chaos though it was challenging because it was an unprecedented event in the history of,
modern world he government has tried enough to save its citizens jobs and its business. T UK ,
institution n respect of tourism industry the government has reduced the tariffs and ta of the. I x

tourism and related industries with the view to recover their loss his action of government. T
helped and supported many industries to elevate their business at better stage he also. T TUI
recovered its loss by generating profitable revenue with the aid of the government the employees.
also covered under this plan to put them back to their earlier position by providing them jobs so
they also recover their loss and feel confidant and motivated he normal phase established again. T ,
the working environment got back its peace and order he company and its workforce is. T
running smoothly again(Gutberle. and Preuss).
SECTION 3
Impact of Covid -19 on micro environment
he group indeed suffered a lot of loss during pandemic t has lost many customersT TUI . I
because of complete shut down in the country here was complete ban on travelling as no. T
public transport was allowed to play fl ights were resting on ground no movement and people, , ,
under a fear of pandemic kept themselves their house he market was completely shut his. T . T
affected the corporate world badly o keep surviving their business companies started offering. T
discounts on purchasing of their products he company had no other option they needed to. T ,
engage with the customers to keep the foundation and running of their business even the
revenue if the company was declining andemic caused huge damage to the companies the. P
effect of which still e isting After the pandemic the companies has to start again which requires thex .
capital to restart the operations and recruiting new workforce Covid impact on the companies has.
cost them badly in every way(Douvrou2019).
UK government recovery plan for micro environment and its impact on companies
he government of had initiated many efforts to overcome the loss of the companiesT UK
and industries by reducing the ta rate by which company can recover its loss After the lockx . ,
down companies started offering discounts to the customers to attract them in order to maintain
their customer base with aid of the government the company anyhow managed to recover its,
loss almost he collective effort of company and government aid brought the social political. T , ,
economic and corporate order back to line, .
SECTION 4
Impact of STEEPLE factors on companies operation
ith the view to assess the internal caliber of the business and facets which e ist within theW x
e ternal business environment the organization adopts the process of S assessmentx TEEPLE .
ollowing are the factors which needs to be addressed areF :

 Social factor: signifies the relationship and interaction between corporate and the public.
his factor promotes the public preferences and trends which prevail in the society heT . T
company is customer oriented irrespective of the class culture religion etc company, , .
offers its products and services to all types of customers herefore for a company like. T ,
which is a global company needs to address the customer preferences and test atTUI
global level and needs to consider the diversity of the market.
 Technological factor: technology had played a very crucial role in development of the
business world echnology has brought many significant changes in the life of the people. T
as well t has changed the way of life and doing business Changes and innovation could. I .
only possible because of technology should use the latest technology to deliver the. TUI
best services to its subscribers.
 Economic factor: economic factor is the most imperative for a company strong economic,
base keeps a company at strong side because it saves the company from many
uncertain events which might affect the business or cause loss or instance recent. F ,
pandemic is the perfect e ample many company could not survive because they do notx ,
have strong economic base he also lost its customer base nearly percent which. T TUI 23
is a big loss herefore it is required to maintain the economic base strong in order to. T
maintain the business(Hardy,Vorobjovas-Pinta. and Eccleston, 2018).
 Environmental Factor: hese factors are uncertain as only assumption could be madeT
because there is no control over the nature of an environment nvironmental disaster. E
could bring grave loss to anybody at anyplace herefore should adopt preventive. T , TUI
measures to remain unaffected from natural disaster he company needs to install. T
emergency services for its customers.
 Political Factor: these refers to regulations and rules which are imposed by the
government to prevent the misconduct by the organization overnment interference is. G
must when companies arbitrarily operating its business he positive side of this factor is. T
the government also favors companies at ti mes of bad situations such as covid pandemic ,
government ordered to reduce the ta on the companies to recover their loss is a positivex
affirmative step by the government to aid its business institutions also took the benefit of. TUI
these schemes in order to recover its loss during pandemic(Unsworth and et.al 2021).
 Legal factor: it refers to the policies and articles of the companies which are made at the
ti
me of the incorporation of the companies which mentions the objectives and role of heT
Company Although it is very important to form a legal basis for a company within the.
legal framework it s an obligation of a company to frame policies for its employees, ’ ’
health and safety social security prevent from any form of discrimination adequate pay, , ,
and other benefits is a world leading tourism industry it has framed many policies. TUI
local and international for its employees and customers(Sanger and Snell 2021).

 Ethical Factor: it refers to the conduct which might be a wrong or good ethics principles,
are not static it varies from person to person owever professional and business ethics, . H
are certain the operations and decisions made in business can be tested whether they are
morally good or bad he ethics of the business are its rules and regulations which. T
describes their rights and obligations of each faculty subscribed to an organization thics. E
are the code of conduct which are well defined in an organization everyone is assigned,
with an objective to perform it is the duty of that person to perform its duty honestly,
without harming anybody is a reputed global organization it has drafted many rules. TUI
and regulations for its associates which is being followed positively and maintaining the
healthy working culture during the course of business operations(Guaita Martínez.,and et.al.,
2021).
Conclusion
rom the above relevant e tract it can be concluded that a healthy businessF x
environment is important to analyze different aspects factors and dimensions of the business, .
o remain the business environment protected it needs to address every factors which mightT
affect the business in present or in future he pandemic is the best e ample which has caused. T x
chaos in business environment across the world early every business was affected during. N ,
pandemic n this report suggestions has been made to the roup for maintain the business. I UTI G
environment during uncertain events and to e pand its business to generate huge profits hisx . T
report has also covered the government affirmative actions to aid its business institution toUK
overcome their loss by reducing ta rates together with the S which helps in assessmentx TEEPLE
of the business internal and e ternal environmentx .
REFERENCES
ooks and journalsB
Durband, R., 2021. Establishing sustainability standards in tourism. In Handbook for Sustainable
Tourism Practitioners. Edward Elgar Publishing.
George, R., 2021. Tourism Distribution. In Marketing Tourism and Hospitality (pp. 285-315).
Palgrave Lubowiecki-Vikuk, A and et.al., 2021. Sustainable development and leisure services:
Changes and trends. In Handbook of sustainable development and leisure services (pp. 1-20).
Springer, Cham.Macmillan, Cham.
Douvrou, M., 2019. Concept Hotels: Offering Unique Experiences to Travelers and Increased
Profitability to BuSeal, P.P., 2018. Sustainable Development and Entrepreneurship in Hotel and
Resorts. In Managing Sustainable Tourism Resources (pp. 177-185). IGI Global.sinesses.
In Strategic Innovative Marketing and Tourism (pp. 1111-1119). Springer, Cham.

Sanger, C. and Snell, D., 2021. Improving the UK Tax Environment——Building Future
Success on Solid Foundations. Belt and Road Initiative Tax Journal.
Gutberlet, M. and Preuss, L., Macro Level Matters: Advancing Circular Economy in Different
Business Systems. Available at SSRN 4093602.
Unsworth, K.L.,and et.al 2021. Employee green behaviour: How organizations can help the
environment. Current Opinion in Psychology, 42, pp.1-6.
Guaita Martínez, J.M.,and et.al., 2021. Social Sustainability on Competitiveness in the Tourism
Industry: Toward New Approach?. In Technological Innovation and International
Competitiveness for Business Growth (pp. 141-164). Palgrave Macmillan, Cham.
Hardy, A., Vorobjovas-Pinta, O. and Eccleston, R., 2018. Enhancing knowledge transfer in
tourism: An Elaboration Likelihood Model approach. Journal of Hospitality and Tourism
Management, 37, pp.33-41.
Troshin, A.S.,and et.al 2020. Information technology in tourism: Effective strategies for
communication with consumers. Journal of Environmental Management & Tourism, 11(2 (42)),
pp.322-330.