Thomas Cook: Analyzing Business Environment & Organizational Impact

This report provides an analysis of different types of organizations, focusing on their size, scope, and structure, with a comparison between private, public, and voluntary sectors using examples such as Thomas Cook Group, Regional Development Agency, and Tourism Concern. It explains the relationship between various organizational functions like finance, marketing, HR, and operations, and how they link to organizational objectives and structure, highlighting the advantages and disadvantages of these interrelationships. The report also identifies the positive and negative impacts of the macro environment on business operations using PESTLE analysis and conducts an internal and external analysis of Thomas Cook using SWOT to identify its strengths and weaknesses, and how these interrelate with external macro factors, ultimately justifying how the SWOT analysis influences decision-making within the organization. Desklib offers additional resources and solved assignments for students.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION................................................................................................................................4
LO1: EXPLAIN THE DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE AND SCOPE...5
P1&P2..........................................................................................................................................5
M1 ANALYSE HOW THE STRUCTURE, SIZE AND SCOPE OF DIFFERENT ORGANISATIONS LINK
TO THE BUSINESS OBJECTIVES AND PRODUCT AND SERVICES OFFERED BY YOUR CHOSEN
ORGANISATION............................................................................................................................9
LO2.................................................................................................................................................11
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL FUNCTIONS AND
HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND STRUCTURE....................................11
M2 ANALYZE THE ADVANTAGES AND DISADVANTAGES OF THE INTERRELATIONSHIPS
BETWEEN ORGANIZATIONAL FUNCTIONS AND THE IMPACT THAT THEY CAN HAVE UPON
ORGANIZATIONAL STRUCTURE.................................................................................................14
L03..................................................................................................................................................16
P4 IDENTIFY THE POSITIVE AND NEGATIVE IMPACT THE MACRO ENVIRONMENT HAS UPON
THE BUSINESS OPERATIONS OF YOUR CHOSEN ORGANIZATION.............................................16
M3 APPLY THE PESTLE MODEL APPROPRIATELY TO SUPPORT A DETAILED ANALYSIS OF THE
MACRO ENVIRONMENT THAT AFFECTS THE OPERATIONS OF YOUR CHOSEN ORGANIZATION
...................................................................................................................................................19
LO4.................................................................................................................................................20
P5 USING SWOT CONDUCT AN INTERNAL AND EXTERNAL ANALYSIS OF YOUR CHOSEN
ORGANISATION IN ORDER TO IDENTIFY ITS STRENGTHS AND WEAKNESSES...........................20
P6 EXPLAIN HOW STRENGTHS AND WEAKNESSES INTERRELATE WITH EXTERNAL MACRO
FACTORS....................................................................................................................................22

M4 APPLY APPROPRIATELY SWOT ANALYSIS AND JUSTIFY HOW THEY INFLUENCE DECISION-
MAKING BY YOUR CHOSEN ORGANIZATION.............................................................................24
CONCLUSION.................................................................................................................................26

INTRODUCTION
This assignment will throw light on the different types of the organisations on the basis of size.
And there will be the comparison of the private company like Thomas cook with the public and
voluntary enterprises. Regional development agency is taken as the example of public
enterprises of UK and Tourism concern is taken as the example of the voluntary sector
organisation. This will be classified which will include the scope, legal structure, size and the
stakeholders. There will be also an explanation of the relationship between the various functions
and their relationship with the organisational structure and objectives. Moreover, there will be
the description of the advantages and limitations of the organisational functions of their
structure. This assignment will demonstrate the negative and positive impact of the macro
environment on the business operations using PESTLE analysis. Further, there will be the
determination of the strengths and weaknesses of the Thomas cook with the relation of external
macro factors.
Thomas cook group is the global travel company which is a British enterprise. It operates in five
main divisions like Central Europe, UK, Germany, Northern Europe and West Europe having
approx. 19.1 million annual customers and it is the second largest travel company in the UK. The
three main shareholders of the company are Standard Life Investments Ltd., Invesco and Guo
Guangchang.

LO1: EXPLAIN THE DIFFERENT TYPES OF ORGANISATIONS, INCLUDING THEIR SIZE
AND SCOPE
P1&P2
INTRODUCTION
This part of the assignment will focus on the comparison of the public, private and voluntary
sector with the example of each on the basis of the size, scope and type of the organisation.
There will be the explanation of the differences between a for-profit organisation, not for profit
organisation and non-government organisation (Hasan and Sultana, 2014).
Following are the differences between the For-profit, not-for-profit and non-governmental
organisations.
For-profit organisations. Not-for-profit organisations. Non-governmental organisations.
 It is a legal entity
which focuses on
earning a profit
 Its area of
operation may be
large or medium
with the sole
proprietorship or
partnership or a
company form
(Subramanian, et
al. 2016).
 This organisation
work for the profit
motive.
 It is being set up to
provide services and
goods to the people
and the member does
not receive the profit
share.
 Its area of operation is
limited.
 This organisation work
for the promotion of
science, art,
commerce or
research.
 It is formed by ordinary
people that operate
independently with no
interference from
government.
 Its area of operation is large.
 This organisation works for
the welfare of the economy
and society (Hasan and
Sultana, 2014).
.

There are different types of the organisations:
Sole trading organisation: It is that type of the organisation which is maintained and owned by
a single person and that is responsible for all profit and loss of the organisation.
Partnership organisation: This is owned and maintained by the two or more people or partners
and both the partners share all profit and loss. For example, FAB.
Limited organisation: The ownership is easily transferable in this kind of the organisation and it
is owned and maintained by the board of directors. Example of this organisation can be the
Associated Foods plc.
Following are the differences between different types of organisation
PARTICULARS PRIVATE COMPANY
(THOMAS COOK)
PUBLIC ENTERPRISE
(REGIONAL
DEVELOPMENT
AGENCY)
VOLUNTARY SECTOR
(TOURISM CONCERN)
DEFINITION This is the type of the
company whose
shares cannot be
offered to the public
for sale and which
works under less
strictness of the legal
requirements. They
may have
shareholders and
issue stocks (Alford
and Greve, 2017)
This enterprise is a
business which is
partly or wholly
owned and
maintained by the
state and is controlled
by the public
authority (Nash,
2017).
The voluntary sector
is also termed as the
non-profit sector and
it is the social activity
which is undertaken
by the organisations
that are non –
governmental and
non for profit (Nash,
2017).
OBJECTIVES This focus on the
profit-making and
The public sector is
set up with the aim of
The main aim of this
enterprise is to do

making sales and
revenue.
offering public service
instead of earning a
profit (Alford and
Greve, 2017).
social welfare and
aims at the social
activity (Nash, 2017).
SIZE Thomas Cook is the
large-sized
enterprises with the
revenue of £9,007
million and 22000
employees as of
2017.
Regional
development
agencies comprised of
the nine non-
departmental public
enterprises
Tourism Concern is
the large-sized
enterprises having
more than 1000
employees and makes
an average income of
around £ 75k (Alford
and Greve, 2017).
LEGAL TYPES Thomas Cook is a
British based global
travel agency which is
listed on the London
stock exchange (Nash,
2017).
It is a public sector
agency of nine public
bodies with one RDA
for each of the NUTS
It is non-
governmental
organisation and the
charity registered
based in the UK with
the charitable status.
SCOPE It is the leading travel
industry company
with the sales of £7.8
billion in the year
offering services all
over the world. It is
176 years old
organisation and
providing new travel
experiences to
everyone (bovaird
It is having nine public
bodies which have
been operating with
the aim of the
economic
development of
England. Its objective
is to inform, educate
and provides service
to its customers.
It advocates the
ethical tourism with
its operations in the
UK. It is a charitable
trust which exposes
the worst human
rights abuses of the
tourism. They
promote tourism that
can welfare the local
community of the

and klijn, 2015). tourist (Nash, 2017).
Thus, there are various types of the organisation having different size, scope and purposes. The
size of the company varies on the basis of the scope and purposes.

M1 ANALYSE HOW THE STRUCTURE, SIZE AND SCOPE OF DIFFERENT
ORGANISATIONS LINK TO THE BUSINESS OBJECTIVES AND PRODUCT AND
SERVICES OFFERED BY YOUR CHOSEN ORGANISATION.
Extent, size and structure of any organization are interconnected with the objectives of the
business organizations. It has been observed that the organizations set their business targets on
the basis of their objective. Moreover, the business objectives are also set according to the size
of the business.
As in the case of the Thomas Cook, the objective is to provide a great experience of the
travelling and tour to it visitors. For this, the company has to make its structure accordingly and
need diversification and expansion on a timely basis. The Board of directors of Thomas Cook
aims s at the application of the corporate governance for the effective and impactful decision
making which is aiming at the success of the company So, the structure of the Thomas Cook
aiming at the attainment of the objectives of the organization. The aim of the Thomas Cook is
to provide the wonderful travel experience and exposure to its visitors thus, the structure and
size of the organization are framed accordingly (Nash, 2017).
In the Instance of the Regional development agency, there are nine units under the agency. All
units are focusing on the fulfilment of the objectives so that they can promote the development
of the region in an effective and efficient manner. The scope of the organization also focuses on
the attainment of the main objectives of promoting economic development. Their structure is
also framed on the basis of the scope and purpose of the agency (Grant, 2016).
Looking at the scenario of the Tourism concern organization, the main purpose of this
organization is to do welfare of the society and people. The organizational structure also
consists of the subunits which are engaged in promoting the ethical tourism. Thomas Cook size
is medium in size but all the members, managers and the employees are concentrated at the
encouragement of the tourism that can benefit the local community of that area. Its scope is
also focused at the ethical tourism and it is an ethical tourism which is engaged in the providing
services and facilities which can expose the exploitation of the human rights in the tourism any
kind of abasement (Grant, 2016).

LO2
P3 EXPLAIN THE RELATIONSHIP BETWEEN DIFFERENT ORGANIZATIONAL
FUNCTIONS AND HOW THEY LINK TO ORGANIZATIONAL OBJECTIVES AND
STRUCTURE
There will be the explanation of the role and function of the finance, marketing, human
resource management and operations and their interrelation for the Thomas Cook
organization. There is a description of the different functions of the organization like Thomas
Cook and how it relates to the organizational structure and objectives (Tomczak, et al. 2018).
Figure 1: Organization Functions
[Source: http://textbook.stpauls.br/business_organization/page_11.htm]
The marketing department of the Thomas Cook aims at the implementation and framing the
strategies and researching the market in a way so that the needs of the tourist and the visitors
can be identified and satisfied. The basic function of marketing in the organization Thomas Cook
is to manage the 7p’s of the marketing. The human resource management team of the Thomas
Cook is concerned with the recruitment and selection of the right people, gives training to them
and maintaining the relations with the employees (Carlson, 2017). The finance team of the
Thomas Cook focuses at the maintaining the record of the financial transactions of the Thomas
Cook. They prepare the financial statements and manage the payroll operations. The operation
function of the Thomas Cook focuses on the managing the process of the creation of services.

They have to do planning, coordinating, organizing and controlling of the resources required to
produce a Thomas Cook services and products.
Every organization is usually divided into various different departments and each department is
interconnected. In the case of the Thomas Cook, for example, if the Thomas Cook need to
launch new holiday package then there will be the promotion of the services that requires
coordination with the finance and operations team as the fund requirement would be fulfilled
by the finance team and operations team is the only department which will look at the
production and management of the production of new services (Carlson, 2017). Moreover, the
marketing and human resource department of the Thomas Cook is also interconnected. The
Thomas Cook need talented candidates for their sales team and it can only be fulfilled by the
coordination with the Human Resource team. Human resource is interrelated with the all
functions of the organization as all staff of department requires a good work environment and
good remuneration which can be only fulfilled by the human resource team. Operations and
Human resource department of the Thomas Cook are also connected at the fundamental level
(Naumann, et al. 2015).
The objectives of the Thomas Cook are to survive in the UK market it means the facing the
competition so that the company can remain in the market. Further its objective is to increase
the sale which means the selling maximum number of the tour packages that will also lead to
maximizing profit. Thomas Cook also has the objective of the satisfying the visitors and growing
the company. Marketing is at the heart of every business, as it will help the Thomas Cook
organization to increase the sales, maximizes the profits and satisfying the customers by
implementing the strategies. The finance department will minimise the costs so that profit can
be left over and the operations will aim at the growth of the company by producing new
services (Bolman and Deal, 2017).
There is four structure, the first is product based structure is used by those companies which is
having diversified product lines which are based on the service and product. Customer-based
structure aims at the dividing different segments on the basis of the particular customer group.
And the geography-based structure involves making of groups on the basis of the groups.

Functional structure involves making groups on the basis of the functional area. Marketing,
finance human resource and operations are being considered as the important in the functional
organizational structure.
Thus there are various departments in the organization which is having their specific roles and
are interconnected. Organizational functions are interconnected with their objectives and
structure (Carlson, 2017).