TUI Group's Business Environment and Impacts of Covid-19

This report provides an overview of TUI Group's business environment, impacts of Covid-19, UK government's tourism recovery plan, and STEEPLE factors affecting the business. It includes information on TUI Group's business overview, size, annual revenue, number of employees, market share, and direct and indirect competitors.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Section 1 ..........................................................................................................................................3
Business overview.......................................................................................................................3
Section 2...........................................................................................................................................5
Impacts of Covid on TUI............................................................................................................5
Section 3 .........................................................................................................................................6
UK government's tourism recovery plan....................................................................................6
Section 4 .........................................................................................................................................7
STEEPLE factors .......................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Covid – 19 has effected the globe exceptionally. Various measures has been taken to
reduce its effect from the industries and several policies has been implemented to make the
business back on the line. This report signifies on brief comprehension of corporation's interior
and exterior environment besides the effects of Covid – 19 on a corporation. Additionally gave
the explanation of recovery plans and policies of government and the impacts has mentioned in
the report. As a consequence of pandemic, elements such as corporation culture, work force,
structure, objectives that adds up and involve interior factors are heavily effected. Further with
this micro exterior environment factors for example contender, distributor, marketer and
consumer are also no exception to the effects of Covid -19(Belyaeva, Z., 2018).Heavy impacts
are also been preserved on technical environment, political factors and legal factors. All together
forms macro business environment for a corporation. Ahead in this report complete information
about TUI group has been shared and briefed. TUI group is headquartered in Hanover Germany
and one of the leading tourism corporation which consist of more than 1500 travel branches
additionally 300 hotels and well established 6 airlines with the fleet count of 140 air crafts. This
organisation was founded in 1923, suffered a enormous loss due to Covid – 19(Bruijl and et. al.,
2018).
Section 1
Business overview
TUI Group is a German corporation which operates in travelling and tourism sector. TUI Group
was started on 9 October,1923 and headquartered in Germany, Hanover. It has partnership in
several airlines and hotels.
 Key events
It elaborates the focal points that highlights the functioning of the organisation on a yearly basis.
Also tells the best part about the organisation. On 11 may 2022 the group has released FY22 half
year results, and on august 2022 released the results of FY22 Q3 results.
 Services
The group provides several types of services like hotel rooms, cruises and resorts with the
world class facilities.

 Business type
The group is one of the leading companies among the others that are operating in this field.
Because the business owns a several and wide range of aircraft's, tour guides and online website
portals and cruises.
 Legal structure
The board of TUI group consist 36 members in total which are distributed in two categories 6
members in executive board and executive committee includes 11 members and the supervisory
board consist of 20 members.
 Size
The group is very huge in size because of its operations in various industries like providing its
consumers the facilities of hotel rooms, resorts, cruses and aircraft's.
 Annual revenue
The organisation has earned a gross profit of 119.80 million on June 30 2022 and suffered a loss
of 103.20 million on 31 December 2021.
 Number of employees
In the organisation the number of employees work is over seventy thousand. The group is still
recruiting.
 Market Share
The group owns a huge share in market which is worth 2.53 billion dollars.
 Sector and industry of operations
The group operates in travel and tourism sector and provides a wide range of rooms and facilities
as per the need and on the basis of the capability of the consumer to pay for it.
 Direct and indirect competitors
The group has a long list of the competitors whether it is direct or indirect. In direct it include the
ultimate travel company and in indirect it is CWT travels.
 Organisational structure
The group follows a specific organisational structure which is functional. In functional group
every thing has to be in a particular sequence and the organisation also follows a specified type
and kind of function.
 Leadership team

The leadership team of the group consist a chief executive officer senior manager, a managing
director and chief marketing officer.
Section 2
Impacts of Covid on TUI
By TUI groups which is the leading travel and tourism company with diverse business
also serves services in global areas but the harzardeous effect of covid has negatuvely impact on
the companies all business segments. The operations and financial loss caused by pandemic has
created challenges for consider company to have it business back on track. Internal atmosphere
comprises of all these components that can be managed by business by executing policies and
process as per (Cepel, M., 2019). These factors and the effect of covid on such elements is listed
in below by considering TUI groups :
 Business culture
Company trends can be defined as the values, morale an observations and values that prevails
within the business . Covid 19 has effect negatively on culture of company as many of workers
lost their jobs because of low business activity.(Fabus, M., 2018)Along with that company
observe regarding objectives and aims shattered ad outcome of business activity globally.
 Technological factors
Considered company uses modern technology gadgets in starting a business activity. Many of
digital instruments and software used were on subscription based services. Apart from this
another technical tools used by company in managing their business activity were rented tools.
 System of business
Company follows hierarchical organisational structure in its all business concern. Effect of
covid causes TUI units to dissolve their business entity activity as an outcome of which levels
and departments in the company suffers loss of regulations and policies to be implemented.
 Development of work culture
Governing bodies had launched plans and policies to make employment landscape in UK
industry of influence global talent. Such policies will help company units on boarding of
employees from multiple nations with various bases just as trends, tradition and many others.
 Digital creativity and connectivity

UK governing bodies highly concentrate on making bridges England tourism and travellers by
connecting with them y developed digitalised software program and mobile accessories. Use of
applications and software program by TUI group in time help them in bring forth digitize selling
plans to attract customized in worldwide marketplace.
 Developed Organizational Construction
As Authorities of UK is generally introducing plan of action in recruiting high-grade talent in
touristy manufacture with learning inheritance in touristy sector. it will lead in set up smooth and
businesslike organizational construction at TUI groups work around the Earth. Generally skilled
and knowledgable employees support in creating businesslike autocratic series along with
accessory and combined organizational construction(Radović-Marković and et. al., 2019).
Section 3
UK government's tourism recovery plan
The tourism recovery plan was incited in November 2020 as a part of the first global
travel taskforce report because the UK government made a commitment to bring forward the
tourism recovery plan 2021. The commitment of prime minister's reopening spring roadmap was
reiterated which was published in February. The commitment of constructing a recovery plan
appeared from a simple fact that tourism has been one of the hardest and severe hit sectors of the
UK economy by Covid-19. The sector of tourism solely depends on the movement of people
from place to place with a purpose of gaining relaxing and spending time with their families and
their loved one and making memories with them. This tourism recovery plan lay out the role that
the UK government will play in assisting and bring forward the tourism sector recovery plan
from Covid – 19. It also sets a framework for how the government will be working with the
sector to build back the sector of tourism by bringing this policy in action. In this recovery plan
their is a total of four chapters. In this plan chapter first 'The framework' includes the following
contents explanation of the introduction, aims and objectives, approach to delivery, working in
partnership and the tourism sector deal. The chapter 2 'A swift recovery' consist of reopening
safely, supporting business and stimulating demand. Chapter 3 'building back better' consist
growth in every nation and region, innovation and resilience, skills, sustainability, inclusivity and
supporting business events. And lastly chapter 4 'Next steps'. This plan also contains six

objectives which tells that how is the policy going to be implemented and what are solely aims of
each and every objectives mentioned in this policy(Vlados and et. al., 2019).
Here is how the recovery plan going to effect the micro environment;
 Consumer spending
The consumer spending powered the UK GDP in the second quarter of 2021 and it is widely
evaluated to be an important and main indicator of macro environment.
 Monetary policy
The federal reserve's monetary policy initiatives are key factors that influence the macro factors
in UK. This policy measures are generally centred about interest rates and access to credit. The
main bar of this policy is federal interest rates limits and it is one of the policy tools also. The
federal reserve sets a federal funds rate for which federal bank borrow from each other and the
rate is used as a base rate for all credit rates in the broad market.
Section 4
STEEPLE factors
This framework moves the organisation to consider how each factor will impact society
and how products and services will fit into future scenarios and without such a tool the
organisation tend to think the future will be similar to the present.
 Social factors
It includes the exterior factors that will effect the organisation in various forms. A lifestyle and
buying habit of the consumer can effect the social factor of TUI Group in various ways like if
the consumer has a luxury kind of preference and can spend more on the factors like luxury
rooms and hotel, that will affect and increase the business.
 Technological factor
This factors mainly effects the operations and selling process of the product which also includes
interaction and gathers intelligence on customers, suppliers and competitors. TUI Group can
enable the online transactions and bank transfers so that it can be more effective in the terms of
consumers and it will increase the operations of the organisation.
 Economic factor
This factor effects the discretionary income and purchasing power of households and
organisation by GDP growth rate and percentage of unemployment. TUI Group can effect the

economy of UK by employing more employees and decreasing the unemployment rate around
UK.(Rofiq and et. al., 2019)
 Environmental factor
This includes the natural, demographical, cultural, economic forces. One main factor of the
environment in which the organisation competes is the rivalry and competition between other
companies and their organisation. The TUI Group can be effected by this factors in the terms of
weather and natural circumstances like earthquake, tsunami, heavy rains and pandemic like
Covid -19.
 Political factors
It includes the factors like policies that are implemented by the government of UK can effect.
TUI Group can be effected by the tourism recovery plan that is a policy made by the government
of UK and can be effected by the policies that are implemented for the betterment of the
economy by the government.
 Legal factor
It includes the laws and sections of law like getting a license, taxation, and labour protection and
hiring the employees. TUI Group can take action against any employee if the employee have not
followed the employment or have gone against the agreement happened between the employee
and the employer or the organisation.
 Ethical factor
It includes the normal beliefs and culture that are being followed by the consumers. TUI Group
can be effected by the beliefs that are being followed by the consumers because if they have
done something against the beliefs of the consumers they can lose the chance to do business with
the consumer again(Syazali and et. al., 2019).

CONCLUSION
In the report provided above includes a brief introduction of the main aim of given case
study and includes the interior business, micro business environment, macro business
environment. However includes the overview of the business, size, sector and industry of
operations in which the organisation operates in. Further explanation of direct and indirect
competitors of the business and its organisational structure and the leadership team of the TUI
Group. Moreover the explanation of the impacts of Covid-19 and impacts of the UK
Government's recovery plan. Impacts of Covid on TUI Group's micro environment . Furthermore
the report asks for the STEEPLE factors which consists social, technological, economic,
environmental, political, legal, and ethical factors that are affecting the business of TUI Group.

REFERENCES
Books and Journals
Belyaeva, Z., 2018. Business environment challenges and trends for contemporary SMEs in
Europe. The sustainable marketing concept in European SMEs.
Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative and
changing business environment. Available at SSRN 3192207.
Cepel, M., 2019. Social and cultural factors and their impact on the quality of business
environment in the SME segment.
Fabus, M., 2018. BUSINESS ENVIRONMENT ANALYSIS BASED ON THE GLOBAL
COMPETITIVENESS INDEX (GCI) AND DOING BUSINESS (DB): CASE STUDY
SLOVAKIA. Journal of Security & Sustainability Issues, 7(4).
Radović-Marković and et. al., 2019. Selection of organization models and creation of
competences of the employed people for the sake of competitiveness growth in global
business environment. International Review, (1-2), pp.64-71.
Rofiq and et. al., 2019. The role of strategic planning and flexibility in shaping SMEs market
orientation in turbulence business environment.
Syazali and et. al., 2019. Retracted: Partial correlation analysis using multiple linear regression:
Impact on business environment of digital marketing interest in the era of industrial
revolution 4.0. Management Science Letters, 9(11), pp.1875-1886.
Vlados and et. al., 2019. Methodological redirections for an evolutionary approach of the
external business environment. J. Mgmt. & Sustainability, 9, p.25.