Impact of Covid-19 and UK Government Recovery Plan on TUI Group's Business Environment

This report analyzes the impact of Covid-19 and UK Government Recovery Plan on TUI Group's internal and micro-environment, STEEPLE factors, and provides suggestions for improving and facing the environments efficiently.

BUSINESS ENVIRONMENT
(LEVEL 4)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Business overview.......................................................................................................................3
The impact of the Covid-19 pandemic on TUI group’s internal environment............................4
The impacts of the UK government’s recovery plan on TUI Group’s internal environment......5
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment........5
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment............................6
The impacts of STEEPLE factors on TUI Group’s operations...................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is sum of all the internal environment like the people and external
forces that affects the company performances and production (Cherunilam, F., 2021). The
business environment of every company has to be studies carefully because it affects the working
of the company due to Covid-19 like all the changes in legal, political or other factors due to
globalisation of market. This report will include all TUI group company and its internal
environment which is affected due to covid like labour relations, working of the departments,
plants and policies , inter personal relation ships etc. Micro environments are the factors that
affects the company working and operation directly like all the customers, suppliers, reseller etc
they affects the company’s day to day activities. Macro environments are the factors that affects
the company productions and future plans due to changes in the economic conditions and the
government policies in which the market is operating. This report will also include legal
structure all the factors both negative and positive that affects the working of an organisation and
also include UK Government recovery plan. Furthermore , it will include direct and indirect
competitions and impact of STEEPLE factors on TUI groups and suggestions for improving and
facing the environments efficiently.
MAIN BODY
Business overview
TUI group is a leading tourism company in United Kingdom with 1600 travel agencies, 6
airlines and 150 aircrafts. This company has around the globe 400 hotels with 27 million
customers and fulfilling all the environmental and social responsibility of the world. This
company is providing various holidays packages to its customers with various travel facilities
and food. This company is a travel agency company providing its facilities across the world in
140 countries. The sales and revenue of this company is 1.78B and cash inflow generated almost
increasing every year to 3.5 billion euros. The scale of operation of this company is wide because

it has worldwide operation and providing its services internationally and increasing its branches
every year. The company has 20% market share among the top companies operating in the UK.
Sector and industry of operation is this is providing travel facilities and various
packages to its customers with various packages and discounts so that they can have a
pleasurable weekends. The ROIC- return on capital investment is 12.2% in 2012 and 11.3% in
2011 this means the company’s saving is improving every year. Its financial performances is
impressive due to increase in earning per share and ROI Direct and indirect competitors due its
large operation world wide it has direct competitions like JET2holidays are also providing the
same services and products and creates tough competition for the company to earn more profits.
There are many indirect competition due to its international market and customers satisfaction is
the key to success of every organisation.
Organisational structure TUI group is a world largest travel company and it is public
limited private sector company operating in 180 countries with millions of customers
internationally. This company is maintain dynamic organisational structure in which it changes
its structure according to period of time like a year or 5 years according to the micro and macro
factors. Dynamic structure helps the company to cope up with all the challenges due to internal
and external factors that affects the company’s operations. Leadership team the CEO of this
company is Friedrich Joussen and David Burling member of executive board. It team is working
on new and innovative ideas for solving all the problems that are coming in between and making
strategies for solving all the external and internal issues.
The impact of the Covid-19 pandemic on TUI group’s internal environment
Covid-19 has created huge losses to travel sectors worldwide due to pandemics this
companies are suffering from huge losses due loss of customers no sell and services (Sołoducho-
Pelc, 2020). TUI group also faces huge losses due its international operation and its internal
environment also got affected due to this pandemic. TUI face suspension of its holidays and
restriction on travelling and flight suspension has created huge losses. Due to losses the company
cannot give its employees basic pay cannot afford there expenses so many of them are resigned
from the company due to low salaries and others are working with half or low salaries with full
dissatisfaction. Due to restrictions of travelling the company’s liability were increased which
results in sold off some its shares and properties to cover all the losses. The company’s turnover

also decreasing due to losses and increasing liability. This company ahs cancelled many luxury
holidays due to people in the pandemic were suffering from huge losses and cannot afford luxury
travelling. The Invested huge amounts in corporate social responsibility to be competitive in the
present world.
The impacts of the UK government’s recovery plan on TUI Group’s internal environment
The tourism industry who hit the hardest during the pandemics and suffering from huge
losses that is the reason the Government has implemented the recovery plan for recovery of taxes
and survival of all the travel sectors in UK (Kohnová, and et.al., 2019). Government of UK made
commitment to publish a recovery of tourism industry in 2021. The actions taken by the
Government are reduced the value added tax for tourism industries , job retention scheme, $5
billion in bounceback loans , involve in huge funding for supporting the communities who are
heavily depended on the tourism sectors. Helping the management of tourism for advertising and
attracting huge number of customers by giving various vouchers to the customers for travelling.
The Government main aim is to accelerate the growth of tourism industry that were suffering due
to covid -19. The tourism sectors contribute huge amount to the growth of the economy and
provide employment to various groups that is why the Government is investing huge funds in
improving their working and recover from all the damages that they were facing and launching
various schemes and consultation with both short tem and long term benefits.
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment
The impact of UK government recovery plan have both positive and negative affects on the
TUI group which are:
 Customers: The customers are attracted towards the plans and policies due to new
vouchers and attractive schemes offered by the government increased the number of
customers due to low rates and various offers for travelling with full safety and
precautions methods by the companies for the safety of the customers (Bjarnsholt, and
et.al., 2021).
 Supplier: The supplier state also improved because now the supplier are supplying all the
products and services which are needed for the company the payments is made by the
government due to large government funding the supplier position also improved.

 Competitors: Due to improvements in tourism industries by the government the
competition also increased which is affecting the TUI group because same tourism
sectors are offering same products and services and it becomes difficult for monopoly
profits. The company need to develop its plans and products in a way to improve its
products quality and size (Ayiine-Etigo, 2021).
 Organisation: The employees are satisfied because they feel safe about their job and less
turnover from the companies which is increasing the efficiency of the firm etc.
 Market: The market also improved due to various recovery plan the market for TUI group
has improved and other new markets are also opened with same products and services for
earning more revenue with full permission by the government (Peters and Peters, N.,
2020).
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment.
 Customers: Due to covid-19 the customers are decreasing on rapid growth because of
pandemic and lockdown and ban of tourism sectors the customers are also suffering from
huge losses and cannot afford the travelling packages due unemployment prevailing at the
time of pandemics (Ha, and et.al., 2022).
 Supplier: The suppliers of the firm were also facing huge losses due to no sales and
purchasing due to closed market for tour activities and many of them are facing huge losses
due to pandemic.
 Organisation: The organisation of TUI group is facing [problems in operating because large
number of employees are leaving the company due to no incentives and low wages and due
to health issues. Due to more turnover the performances efficiency of the groups also
decreased.
 Market: The market condition of this company becomes worse due to no tourism and
restriction on tourism activities the market is losing its value and the scope of market also
decreasing due to covid-19 or lockdown (Darmawan, M.D., 2018).

The impacts of STEEPLE factors on TUI Group’s operations.
Due to covid-19 the macro environment factors also affected which directly affected the
working of the company. TUI group is largest tourism company and facing huge competitions
due to its wide operations the STEEPLE factors that has impact on its business are: Social factor: All the factors like peoples education, wealth, family size, behaviours affects
the working of the firm because every society has different motive and habits of buying and
using the services in a different way change in any factor will affect the demand of the
company products and services (Guerrero-Bote, and et.al., 2021). Technological factor: Use of artificial intelligence and advanced technology has increased
the competition and those who are using the old techniques and methods of producing the
products and services are facing huge losses because consumers only buy those products and
services which ahs variety of features and services and satisfied there needs (Depei, 2021). Economic factor: They are factors influence by the Government like all the wage system,
interest rates, laws and policies and unemployment affects the working of the company. The
TUI group customers are affected by the unemployment due to covid -19. This factors
affects the future strategy of the companies due to uncertainty. Environmental factor: TUI groups also affected by the factors like pollution, population,
food, lights, etc all this factors will affect the company operation because if this factors are
to be considered carefully for successful operation of the company in future (Xia, and et.al.,
2020). Political factor: This are the political conditions of the company that affects the working of
the business like tax policies, labour policies, trade restrictions , tariffs value etc by the
government of different countries. TUI group is operating in international market and has to
carefully follow all this policies for efficiency in there work. Legal factor: They are legal law by the government like due to covid -19 the law passes for
restriction and suspensions on the travelling in UK due to pandemics. Various laws by the
Government affects the working of the company which has to be carefully forecasted by the
TUI group for efficiency in its work. Ethical factor: The ethical behaviours of the company like loyalty of company towards the
customers, following all the ethical values or conducting its activities ethically is duty of

every company for surviving in the present environments. All the social responsibility and
corporate responsibility has to be followed by the company (Yu, D.A., 2020).
CONCLUSION
From the above report it has been concluded that business environment of each company
micro or macro affects the working of the company and due to pandemic the tourism sectors
were facing huge losses due restriction on tourism by the government. It also concluded from the
above report all the internal factors and micro factors like employees, or competition can be
studies or analysed before formulating any plans and policies for the future. Internal factors are
the factors which can affects the company efficiency and has to be studied carefully before
implementing any strategies. Furthermore, macro environment factors also affects the company
operation like legal, political, technological which has to be carefully investigated and future
forecasting should be done by studying the whole external market carefully. It is also has been
concluded that from the UK Government recovery plan the TUI group can be benefited by using
this help in a correct way. Using the government freedom in a most appropriate way by
providing customers a unique quality services with more advanced features like adding some
more variety of trips and packages for family and couples with reasonable prices and cost.

REFERENCES
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tourism sectors: A new agenda for the future?. Tourism Management Perspectives, 39,
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Peters and Peters, N., 2020. Visit people tourism recovery. KPPM Strategy.
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