Managing Change and Shaping Strategic Direction for a UK Travel Tourism Company

THE THEORY BEHIND
THE STRATEGY

Table of Contents.
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

Topic: “How can a UK Travel Tourism company best manage change and shape its
strategic direction?”
Change management refers to the process of systematic dealing of various approaches,
strategies, theories, models which helps in the transformation of the company's objectives and
goals (Manuti and Giancaspro, 2021). The purpose of this is to effectively implement the
strategies to be ready for the drastic change. The essay will discuss the change management
process of TUI Group which is UK's Travel and Tourism company providing wide range of
services to the customers. The quoted company have the market share of 2.75bn EUR and
around 51,000 employees worldwide having Manchester Airport as the hub for TUI Airways
which is UK's third busiest airport. It will further evaluate the clear vision and mission by
studying the micro and macro environment elements. It will explore the theoretical schools of
change management and strategic business which results in managing the risk at different levels.
Lastly, essay will analyse the planning and management process with the assistance of KPI.
Strategy refers to the action which are being taken by an organisation to achieve the goals
and are the guidelines which are to be followed for desired needs in the future. Strategy is
significant for the operational efficiency of the business resulting in enhancing market share,
profitability and durability. Tourist Union International (TUI) Group, a British Public Company
which is one of the apt example of change management. Until 1997, the company was working
as a mining one and with the change management they shifted to travel and tourism industry
being headquartered in Germany. It is one of the leading business in the sector of tourism
owning their own aircraft, hotels, cruise, holiday destination agency etc. The aim of the TUI
Group is to provide better experience to its loyal customers and at the same time minimizing the
ecological damage with sustainability. Creating and fulfilling their customers dreams with
unforgettable moments is the vision of the Group. To know the strategic planning, there is a
requirement to evaluate the internal elements i.e. strengths & weaknesses and external factors
such as threats & opportunities which could be possible by the Design School of strategy
management (Johann, 2022). With the help of strategic management framework, the quoted
company could be able to evaluate the performance of its strategies by repeating and
implementing the steps of strategy into different activities. Vision, mission, objectives, approach
and tactics are the essential elements of the strategic framework which are discussed in the essay.

The Tourism company proactively formulate its objectives and aims so to achieve the long-term
compatibility in the tourism environment. This would go side-by-side considering the
government plans for the tourism industry. The model aids the company to frame sustainable
development plans keeping in mind all the environmental factors which could impact the process
of the TUI Group. Thompson's and Martin's strategic management framework create linkage
between the capabilities, competencies and competitive edge of the TUI Group comparing with
the mission and vision of the company. This would assist the company to target new customers
and achieve overall aims of the Group. The biggest reason to utilize this strategy is that it aids to
keep the team aligned by preventing the risks and challenges occurred during change (Bishop,
2018). It also prepares the internal management to be ready for the change by becoming more
flexible as well as to hold the members accountable for the acts done by them. Performance of
the Group could be measured on the long-term as well as short-term goals and the most common
kinds of indicators are operational, functional, strategic, leading and lagging key performance
indicators.
One of the biggest strength of the Group is to have more than 150 charter planes flying
over worldwide destination and with a direct selling of holiday plans directly to the customers.
Highly competitive market as well as cultural & social issues are the major weakness that the
company has to deal with. Further, the quoted organization has the opportunity to expand its
market share in emerging market and should focus on the websites and apps. Pandemic, Brexit,
fiscal crisis and foreign exchange risk are the few threats that the company is currently facing.
The external factors which are being responsible for framing strategy management is through the
Environmental and Cultural School (Hattangadi, 2019). The key role of political factor on the
Group could be visible as British Government policies to boost up the tourism industry is
beneficial for the Group. Potential customers spending power has a significant impact post-
pandemic as there was a decrease in the income of the audience which is a major economic
factor. Society's class structure and demographic elements of people aid the company to plan its
strategies. The recent development in the technological aspect by the competitors and shifting
towards automation could be a challenge for the quoted company. Environmental and legal
factor are consider to be important for the TUI Group because it would help to maintain the
global reputation of the company and attracts new customers.