Business Environment: Impact of Pandemic and UK Government Recovery Plan on TUI Group

This report analyzes the impact of pandemic and UK government recovery plan on TUI Group's internal and micro environment. It also evaluates the STEEPLE factors affecting the company and provides suggestions and recommendations for improvement.

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
SECTION 1......................................................................................................................................3
Summary of TUI Group..............................................................................................................3
SECTION 2......................................................................................................................................4
Impact of pandemic and UK government recovery plan on company........................................4
SECTION 3......................................................................................................................................5
Impact of UK government and pandemic on micro environment of company...........................5
SECTION 4......................................................................................................................................6
STEEPLE factors on company....................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the collection of the micro and macro factors which
includes employees, consumers, supply and demand, etc. The internal business environment
termed as the factors which are within the organization that includes culture, members, etc.
Macro business environment refers to the conditions that used to exist in the whole economy.
The current report is based on the TUI group, it is a German leisure, tourism and travel
organization.
This report will put focus on the business overview of the organization by outlining the
organizational structure. Further this report will indicate the impact of UK government plan and
COVID-19 on the internal environment of the company. Moreover, this report will put focus on
the impact of pandemic and government recovery plan on company. This report will also outline
the effect of STEEPLE factors on the TUI group operations. There will also be inclusion of the
suggestions and recommendations to TUI group that helps them to have benefit from the
government of UK. s
SECTION 1
Summary of TUI Group
TUI is the travel and tourism company that used to provide the services to the people in the
market. This is one of the leading travel and tourism company that used to combine the local
services with the digital platform in 140+ countries in the world. The company has been
operating from more than 70 years and used to earn good amount of profit in the market. The
products provided by the company includes the charter and scheduled airlines for passengers,
holidays packages, hotel, resorts and cruise lines. It is one of the most famous travel agency
services provider company worldwide (Calderwood and Soshkin, 2019). TUI is the public
limited company, that is one of the leading travel group that used to have its operations in several
countries.
The company used to have the good annual revenue that makes them one of the leading
group in the global market. It has almost 50548 employees that shows company is operating well
in the market. The operating income of the company in 2021 was around € 2.025 billion and net
income was € 2.481 billion. The annual revenue of the company in 2021 was seen around €
4.732 Billion that shows that the company is operating well in the market. The company used to

have high market share that helps to grow more even after the happening of COVID-19. This
industry used to have its operations in travel and tourism sector by providing the different travel
services to the people.
As this is one of the leading company in the global market the company used to have many
competitors in the market. By having the competitors, it used to have negative impact on the
working and affect the market share as well. The top competitors of the company are Thomas
Cook India, Holiday break, Flight Centre Travel Group, etc. these used to have better revenues
as compare to TUI Groups (Nepal, 2020). The cited company must use to have better operations
in the market that helps them to have better profits even after the happening of pandemic
worldwide. The company has 1600 travel agencies, 380 hotels and resorts, 16 cruise liners, etc.
that helps the company to have better operations in the market. This helps them to have better
operations in the competitive market.
The company used to have the horizontal organizational structure that makes them to work
with the same level of chain in the market. It used to have the major part of airlines that helps
them to have interrelationship with different companies worldwide (Nazmfar and et.al., 2019).
TUI group used to have better team which helps them to work and have good profits in the
market. By having the best leaders, it helps to guide the team in order to have better operations in
the market.
SECTION 2
Impact of pandemic and UK government recovery plan on company
The COVID- 19 was the most affecting factor which used to have negative impact on the
travel and tourism industry. It has affected the internal environment of the tourism industry as
they were not able to meet it objectives in the years. TUI is the leading travel and tourism
industry so this was great impacted by the COVID- 19 (Galvani, Lew and Perez, 2020). The
internal environment of the company includes the structure, quality of products and services,
resources availability, objectives of the company, etc. As with the happening of pandemic there
was less availability of the resources that used to have effect on the achievements on the
objectives of the company. The internal factors basically used to evaluate the atmosphere within
the company or industry (Teeroovengadum and et.al., 2021). The pandemic has decreases the
profitability of the company as there was lock-down in the market. People in the market were not

allowed to get out from their home as this used to have great impact on the travel and tourism
companies like TUI Groups. This has mismanaged the working style and decreases quality of
human resources operates in the company. By having changes in the market used to have great
impact on the internal environment of the cited company.
In November 2021, the UK government made the commitment in order to publish the
recovery plan for tourism sector. This plan will include the important decisions related to the
recovery of the travel and tourism sector. By making this plan by UK government, it has positive
impact on the working of the TUI group. This helps them to have the proper management and
have the better staff which helps them to work better (Cheung and et.al., 2021). By this it will
ensure them that they have the full potential in order to have their contribution in the tourism and
travel industry. This recovery plan helps the company in order to have the great comeback in the
market after the happening of COVID-19. The company now has the quality of employees and
the great objectives that helps them to have the better internal environment. This was the best
plan made by the government in order to have good working of the employees in the
organization. By this company used to have better profits which was greatly affected by the
pandemic. The company must focus recovery plan that is made by UK government which
provide them financial and non- financial facilities in order to have better internal environment.
SECTION 3
Impact of UK government and pandemic on micro environment of company
The micro environment in travel and tourism include the suppliers, consumers,
facilitators and other public which used to have impact on working of company. As the UK
government has brought the recovery plan that helps the tourism and travel industry to have the
recovery from the great loss. The suppliers and customers are the most affecting micro factors
which has affected the profitability of the company (Jones, 2022). But by having the recovery
plan it helps TUI groups to have great comeback in the market. This plan used to provide the
benefits and better facilities to the company that helps them to provide the better services in the
market. This makes the customers to have trust on the company and used to avail the services
and facilities provided by organization. It also provides the company to have the proper recovery
of the things on time without having any delays in order to work in the society.

The pandemic has affected the whole world which causes the great impact on the
working of the travel and tourism sector. TUI Group is the leading German Leisure that was
most affected by the happening of pandemic. As the company has made the goals and objectives
which used to have the negative impact by the COVID-19. This makes the company to be in
great trouble as there was not proper working and travel sector was fully shut down. Travel and
tourism was the most affected sector by the happening of pandemic which mismanaged the
working of employees in the company. As people were not travelling that time which makes the
travel sector to be in loss as there was lock-down in the market. By having the wide operations in
different countries the working of each agency has affected which decreases the profitability of
the company (Swaikoski, 2020). The micro environment of the company must focus on the
proper working that helps them to have better operations after the pandemic. The most affecting
micro-factor was the human resources that used to work by making the proper planning and their
planning was failed due to COVID-19.
SECTION 4
STEEPLE factors on company
STEEPLE analysis is the strategic framework that helps the company to evaluate the
macro factors. By having such a great operation, it makes the company to have better
competition with its competitors in the market (PESTLE Analysis of the Tourism Industry, 2022).
The STEEPLE factors on the TUI Groups is as described below:
Social: This factors includes the culture of the society which used to have impact on the
working of organization in the competitive market. TUI must focus on the well-being and the
changing needs of the customers related to the travel and tourism.
Technological: By the happening of pandemic this is the most affecting factor which has
affected the profitability of the transportation industry. The cited company must analyse the
technological changes which helps them to have better and fast operations in the market.
Economic: This factor includes the inflation rates, interest rates, saving and exchange
rates, etc. which used to have impact on demand and supply of services. As TUI used to operate
in different countries it must focus on the changing rates according to the particular country. This
helps the company to have better operations in the market.

Environmental: As the cited organization used to have its operations in the different
market so it must follow the norms related to every market (Lew and et.al., 2020). This makes
the company to have the survivability and gain the competitive edge in the market.
Political: This factor used to play a vital role that used to have impact on the TUI long
term profitability. By having the operation in the dozens of countries it is the primary
requirement for the company to follow the political aspects of the countries. This will help the
company to survive in the different market.
Legal: This is also one of the important macro factor that must be followed by the
company in order to have better operations in the market. The company must comply with the
laws of the different countries where it is operating. By evaluating such it will help the company
to gain the competitive advantage in the market.
Ethical: This factor includes the fair trade policy, CSR, etc. that must be comply by the
company to survive in the market. As the cited organization is leading tourism company, so they
must contribute some percent of revenue as CSR. This helps them to have better goodwill by
following the ethics in order to have the welfare of the society.
CONCLUSION
Suggestions to company to improve micro and macro factors
It is suggested to the company that they must focus on the changing factors which helps
them to have improvement in the internal environment. The company must comply with the
political and environmental changes in the different countries which helps them to have
improvement in macro analysis. They must provide the better facilities and infrastructure to the
customers which increases the profitability of the company (Nurpeissova and Islam, 2021). They
must have the trained and skilled staff which helps them to overcome from the loss that they
faced due to COVID.
Recommendations to have benefit from recovery plan by government
By having the government recovery plan it helps the company to provide the world- class
tourism to the people as quick as possible after the happening of pandemic. This used to provide
the financial and non-financial help to the tourism sector. So this will benefit the TUI Group to
have the better facilities and infrastructure for the customers in the market. This plan will help
the company to know and set the role in order to have better performance in the global market.

REFERENCES
Books and Journals
Calderwood, L. U. and Soshkin, M., 2019, September. The travel and tourism competitiveness
report 2019. World Economic Forum.
Cheung, C. and et.al., 2021. The impact of COVID-19 pandemic on the psychological needs of
tourists: Implications for the travel and tourism industry. Journal of Travel & Tourism
Marketing, 38(2), pp.155-166.
Galvani, A., Lew, A. A. and Perez, M. S., 2020. COVID-19 is expanding global consciousness
and the sustainability of travel and tourism. Tourism Geographies. 22(3). pp.567-576.
Jones, P., 2022. A review of the UK’s tourism recovery plans post COVID-19. Athens Journal of
Tourism. 9(1). pp.9-18.
Lew, A. A. and et.al., 2020. Visions of travel and tourism after the global COVID-19
transformation of 2020. Tourism Geographies. 22(3). pp.455-466.
Nazmfar, H. and et.al., 2019. Analysis of travel and tourism competitiveness index in middle-
east countries. Asia Pacific Journal of Tourism Research. 24(6). pp.501-513.
Nepal, S. K., 2020. Adventure travel and tourism after COVID-19–business as usual or
opportunity to reset?. Tourism Geographies. 22(3). pp.646-650.
Nurpeissova, A. and Islam, D. M. Z., 2021. Analysis of key steps to overcome the crisis in
tourism during a pandemic: the experience of Kazakhstan and the United
Kingdom. Central Asian Economic Review. (2). pp.64-80.
Swaikoski, D., 2020. Leisure in the time of coronavirus: indigenous tourism in Canada and the
impacts of COVID-19. World Leisure Journal. 62(4). pp.311-314.
Teeroovengadum, V. and et.al., 2021. Minimising perceived travel risk in the aftermath of the
COVID-19 pandemic to boost travel and tourism. Tourism Review.
Online
PESTLE Analysis of the Tourism Industry. 2022. [Online]. Available
through:<https://pestleanalysis.com/pestle-analysis-of-tourism/>