Business Health Check Report: Thomas Cook Group Business Analysis

This report presents a comprehensive business health check of the Thomas Cook Group, a British travel organization. It begins with an introduction to business health checks and their importance, followed by an analysis of Thomas Cook's objectives, mission, and vision. The report then delves into the factors impacting the business, utilizing PESTLE and Porter's Five Forces analyses to assess the external and competitive environments. A SWOT analysis is also included to evaluate the company's internal strengths, weaknesses, opportunities, and threats. The report further explores potential improvements to the business, focusing on the Ansoff Growth Matrix to identify strategies for market penetration, market development, and product development. The report concludes with an overview of the current skills of management and staff and plans for skill development, highlighting the significance of these factors for the business's success. References are provided to support the analysis.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Objectives of the business................................................................................................1
1.2 Factors that impact on the business..................................................................................2
1.3 Potential improvements to the business organisation.......................................................5
M1 Objectives of their chosen organisation meet the ‘SMART’ criteria of organisational
objectives................................................................................................................................6
D1 Elements of Ansoff’s Growth Matrix have contributed to improvements to their chosen
organisation............................................................................................................................6
TASK 2............................................................................................................................................7
2.1 Effectiveness of the business............................................................................................7
2. 2 Plans to improve the business, justifying their value......................................................7
M2 Evaluate the effectiveness of areas of the business stipulated in contribute to
organisational growth.............................................................................................................9
D2 Plans developed can lead to an improvement in the business..........................................9
TASK 3............................................................................................................................................9
3.1 Current skills of management and staff............................................................................9
3.2 Plans for the development of skills for management and staff......................................11
M3 Analyse the effect current experience, skills and abilities of management and staff may
have on the business.............................................................................................................13
D3 Evaluate the various methods that can be used to develop the skills of management and
staff.......................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business health check is explained as current comprehensive evaluation of necessary
components of business (Ajunwa, Crawford and Ford, 2016). It is an essential tool that is mainly
used through organisation for identifying and analysing strengths and weaknesses. Business
health check asks some of the effective questions regarding business; highlight the potential
weakness areas and also pointing in right direction. In present era, every company wants to
develop as well as retain at market place for long time period. For achieving same, Business
health check support in measuring the required improvement areas. It is necessary for an
organisation to analyse activities at marketplace for purpose of achieve high success. It can be
possible through developing the objectives of business by which it can enhance market share in
an easy manner and achieve competitive benefit. This present report is based on the Thomas
Cook Group. It is British Travel organisation and was founded in 2007. It owns large number of
the tour operators consisting Thomas Cook Airlines, Thomas Cook Airlines Balearics, Condor
etc. In given report will be mention about factors which affect on business. Potential
improvement to business organisation will be discussed here in proper manner. The company
develop plans to make improvement in business will also explain in this report. They need to
improve various areas for achievement of goal and objective of business.
TASK 1
1.1 Objectives of the business
Business is explains as an enterprise or organisation that engaged in industrial and
commercial activities (Arntz-Gray, 2016). Business can be non- profit and for- profit
organisations which operate business to fulfil charitable mission. It is related with the organized
efforts as well as activities of people in order to produce and sell the services or products for
profit purpose. Each business needs some investment form and also enough consumers to whom
the output can be sold on consistent manner in context to earn profit.
Thomas Cook is Global Travel organisation and establish in year 2007 through merger of
the Thomas Cook AG, itself successor to MyTravel Group plc and Thomas Cook & Son. In this,
companies announced that they are expected to make the savings more than £75 million by
following an integration of both the businesses. In terms of merger, Thomas Cooks Ag owned
52% of new group and the MyTravel Group owned remaining 48% of share. The main focus of
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this company is to determining the needs and demands of consumers and satisfying them in an
effective or better manner.
Mission
It explains business of company, its objectives and also approaches to reach at them. The
mission of this organisation is “to provide the better holiday experience to customers.”
Vision
The vision of Thomas Cook is to “inspire the people to get out in world and also explore
it”. This company wants to provide the loved holiday firm.
Scope
In hospitality sector, Thomas Cook Group has the more scope in achieve competitive
success. This organisation deals in package holidays, passenger airline, resorts and hotels. In
relation to Thomas Cook Group, firm has wider scope due to offer thee better services to
business and also provide better experience to consumers.
Objectives
The main objective of Thomas Cook is to make profit and be successful. It provides the
scheduled flights as well as promotes tourism within United Kingdom. This company gives
overseas packaged holidays consists Care Hire, Flights, Airlines, Travel Insurance and Hotels.
1.2 Factors that impact on the business
At market place, Internal and External are the different factors which affect operations
and performance level of business in negative and positive manner (Borchers, Chang and
Gershwin, 2017). Under this, business health check aids in support business in minimizing
negative impact from business.
For analyse external environment, Thomas Cook uses the PESTLE analysis. It will help
company to take the effective decisions in better manner. PESTLE analysis of Thomas Cook
mention below:
Political factor- It plays a necessary role in identifying factors which can affect long term
profitability of Thomas Cook in certain market or country (Chang and et. al., 2016). This factor
is concerned with intervention level of local as well as international government in economic and
business environment. As Thomas Cook provides conduct its operations in other countries and
the instability of government in another country develop negative effect on its business
operations.
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Economic factor- It consists the macro environment factors like savings rate, foreign
exchange rate, economic cycle, inflation rate etc. that identify aggregate investment and demands
in an economy (Forbes and Watt, 2015). This factor concern to the travel and tourism because it
may be influence, cost and demand. The Package holidays are income elastic business, as
income enhance or decrease, it can impact demand.
Social factor- Culture of society and way of performing things affect culture of company
in environment. Shared attitudes and beliefs of people play a necessary role. It is necessary for
company to understand consumers of market and design marketing messages for customers of
Travel & Tourism. If Thomas Cook will not focus on customers’ demands and their need will
not satisfy then it will develop negative impact on business.
Technological factor- This factor is related to use of the internet that permit people
opportunities to be become more independent as well as develop plans ion the basis of their
preferences. The main aim of Thomas Cook to provide high quality online services so that
people can do reservations, room bookings etc.
Legal factor- Under this, government developed different legislations and rules to protect
intellectual property if company (Grasso and et. al., 2017). It is necessary for firm to follow all
the legislations at the time of conducting business. When enter into market, Thomas Cook
leadership follows Anti-trust law, Employment law, Health and safety law, Data Protection etc.
It in case it fails to consider these legislations then conflicts and issues can be arise at workplace
and develop negative impact on development of business.
Environmental factor- Protecting environment is most necessary and tour operators are
responsible towards the sustainability of environment. Various markets have the different
environmental standards which affect on profit level of company in those markets. Thomas Cook
follows all the environment standards when performing business.
Thomas Cook uses Porter’s Five Forces to analyse competition of business. It helps in
determine strengths and weaknesses of industry. Porter’s Five Forces of Thomas Cook mention
below:
Threat of New Entrants- In Travel and Tourism sector, new entrants brings innovation or
new ways to do something. It put the pressure on Thomas Cook by using low price strategy;
minimize cost and offering new value propositions to consumers. It has to manage all challenges
and also develop barriers to gain the competitive benefits.
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Bargaining Power of Suppliers- The organisations in Travel and Tourism sector
purchase raw materials from many suppliers. Suppliers which are in dominant positions can
reduce margins and from this Thomas Cook can earn in market. This company have the high
power in the price negotiation with its suppliers.
Bargaining Power of Buyers- Customers are the main source of income to company
(Hughes and Ferrett, 2012). They are more information than before and high quality offerings in
less cost. Thomas Cook has the powerful customer base and bargaining power of consumers is
high as they seeks to enhancing offers and discounts.
Threat from Substitute Products- When the new service or products meets same
customer requirements in various ways then industry suffers profitability. In hospitality sector,
threat of substitute is high for Thomas Cook. So, it is necessary for organisation to invest in to
Research & Development on continuous basis to minimize risks.
Rivalry among the existing players- If competitors among existing players is intense then
it will related to less cost and minimize profitability of business (Hurlburt, Voas and Miller,
2012). Thomas Cook operates in competitive market and it has large number of competitors. So,
it is complex for company to earn profit. In this case, Thomas Cook can develop sustainable
differentiation and Collaborate with rivals to enhance the market size.
SWOT Analysis is strategic planning tool that is used by Thomas Cook to determine
strengths, weaknesses, opportunities and threats. SWOT analysis of organisation mention below:
Strengths Weaknesses
 It offers better deal of customization
and also flexible option for holiday
packages on the basis of customers’
requirement.
 Thomas Cook provides training to
employees for enhance their skills and
motivation level.
 It has global presence in many domains
such as hotels, flights, resorts etc.
 This organisation has limited market
share because of intense competition.
 The financial planning of Thomas Cook
is not properly done.
Opportunities Threat
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 It can enhance its share prices through
expand business.
 For effective penetration, Thomas Cook
can digitalise their operations.
 Enhance in the liabilities because of
unpaid rivals.
 Changing the purchasing behaviour of
customers is main threat for Thomas
Cook.
1.3 Potential improvements to the business organisation
In hospitality sector, it is essential for Thomas Cook organisation to make improvement
in business after measuring internal as well as external factors. With the help of this, an
organisation can improve its performance at market place. In context to this, Thomas Cook use
Ansoff Growth Matrix to assess areas for require improvement within business.
Market penetration- It is the first step of the Ansoff matrix. It is related to the increasing
the market shares of the current products and services (MacCarthy and Hill, 2016). This is also
known by the “business as usual” and it is required to have detailed knowledge about the
competitors and customers. As well as this strategy needs too much investment. Such as in the
Thomas cook company, they can adopt this strategy for their existing services. They can analyse
the need and demand of customers and accordingly can modify their current services. So through
this they can grow their market share without launching any new service.
Market development- This strategy includes developing the aspect of market by new
product dimensions as well as by new distribution channels. Eventually, the market development
strategy is quite risky in compare to the market penetration strategy. Such as in the Thomas cook
company, they can implement this strategy and can develop a new market wherein, demand of
their services is high. If they will apply this strategy then their market share and growth can be
enhance in the new market areas. So overall this strategy is risky but more beneficial in compare.
Product development: It is related with growth strategy in which companies use to set a
specific aim that is related with introducing new product in existing marketplace (Milovic,
2012). This strategy give rise to new competition for company and forces them to modify their
goods by adding unique feature that support to attain desirable market value and company can
earn faithful profit. In context to Thomas cook, this development strategy places the marketing
emphases on:
 Research and development and innovation
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 Being first to market
This helps them to develop best suitable product within existing market that is desired by
large number of customer.
Diversification- It is related with the growth strategy in which companies use to launch
new product into very new market (Ojala and Tenold, 2017). Companies before adopting
diversification growth strategy are required to have enough knowledge about market and have an
honest assessment of total risk related with launching new product. In Thomas cook manager
desire to grow profit so they analyse the countries that is rich with flora and fauna and very few
people know about that place. This helps them, to develop a new trip for new location which can
be a major centre of attraction helping to increase profit margin.
After analysing different elements of Ansoff's matrix, it can be concluded that Thomas
Cook need to adopt market development strategies for their business. In this strategy,
organisation deals with existing products in new market. As this can expand business in other
market with same available products which helps them to earn maximum profits and gain. It also
helps to compete with their competitors and gain competitive advantages.
M1 Objectives of their chosen organisation meet the ‘SMART’ criteria of organisational
objectives
Objective of Thomas Cook is to provide high quality services to consumers for the
purpose of enhance market share in next 1 year (Peleteiro and et. al., 2014). For achieving same,
focus of an organisation is to offer quality services to consumers for attracting large number of
consumers. Under this, objectives are measurable in context to which the consumers get attract
from services and products offers through company and also sustain then for long time. There is
a need to firm to examine preferences of consumers which help in attract them. It will aid in
contribute towards increasing brand image of firm along with profitability.
D1 Elements of Ansoff’s Growth Matrix have contributed to improvements to their chosen
organisation
Thomas Cook uses Ansoff growth matrix for make improvement in required areas. This
matrix consists four different strategic options which aids in improving business. In order to
aching success at marketplace, Thomas Cook can use market development strategy that helps in
develop the new market segment for existing products. It will help company to increase its brand
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image and attain set target. This required proper research and development because organisation
is going to enter into new market.
TASK 2
2.1 Effectiveness of the business
In business, effectiveness is related to level of the quality with which process or tasks is
to be carried out and lead to high business performance (Porter and Tanner, 2012). It is a degree
to which business objectives are attained and also extend to which the targeted issues are solved.
It will help business in achieving set objectives within give period of time. Review of business
areas effectiveness mention below:
Products/Services- Thomas Cook offers packaged holidays at global level and it
consists Hotels, Car Hire, Travel Insurance, Flights, and Airlines etc. It provides with drink,
entertainment, food and also can be booked by call centres, travel agents and website of Thomas
Cook. The services provided through organisation help in make profit as it offer attractive
holiday packages.
Marketing- This area of business is concerned with aware people about services or
products and also connecting with them. Thomas Cook organisation promotes its business
through showcasing holiday packages under festive holiday, beach holiday, Cruise special
holiday etc. It sponsors the big events to enhance brand visibility.
Finance- This function of Thomas Cook group plays a necessary role in performing
business activities in an effective manner. It arranges funds to provide high quality services on
the basis of customer’s preferences. It helps in satisfying needs of people and enhances the
performance level of business.
Staff- Employees are the main part of company and plays an essential role in performing
business operations (Rodríguez-Pérez and Peña-Rodríguez, 2012). Thomas Cook Company
includes its staff members in decision making process. It consists conferences, intranets and
face- to- face meetings to share the information regarding its strategy. For enhance knowledge
and skills, company conducts training programmes for staff.
2. 2 Plans to improve the business, justifying their value
Business plan refers to written description regarding future of company. This is defined
as legal written document which is formulated and designed to provide correct information, data
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for running and new firms. While preparing business plan, it is essential to considered different
aspects like marketing strategy, firm nature, financial condition, objectives. This is future map of
any organisation which assists in providing guidance for accomplishment and achievement of
goal and objectives. This plan is prepared by all firms to get success and growth in competitive
market. Thomas Cook needs to formulate this business plan through consideration of various
areas that are mentioned below
Planning Marketing- This is the areas where marketing manager of Thomas Cook need
to make plan for their market which considers various aspects such as need and demand of
consumers, strategy followed by competitors. This planning of marketing helps respective
organisation to make effective plan in order to create relationship with visitors, consumers,
guests and satisfying them with their requirement for accomplishment of goal and objectives.
Sales and Productivity- This is the important area through which organisation achieve
their set outcomes by selling products and services. For increasing revenues, Thomas Cook has
to make plan, policies and strategies for increasing sales and productivity. They can achieve such
areas by providing high quality goods and services which automatically help to raise profits.
Therefore, if both requirement of consumer and quality is met then respective organisation can
easily enhance their sales and productivity in proper manner.
Planning Organisation's Financial Management System- Each and every organisation
running their business in competitive market has to prepare proper finance system for their
company. With help of finance, organisation and their activities and function are running in
market. The finance manager of Thomas Cook needs to make planning and allocate various
funds to each and every department in effective and efficient manner. There are various
departments in business such as marketing, production, logistics, operation and other which
should be allocated effectively and efficiently. Therefore, in order to manage such department in
organisation, it is very important for respective organisation to have skilled, capable and
experienced people.
Planning the Roles and Responsibilities of Staff and Management- There are various
staff running in organisation along with single management. The business planner should
identify roles and responsibilities of staff and management in systematic manner. The staffs
working in Thomas Cook knows their roles and responsibilities then they can carry out work in
effective and efficient manner. Both management and staff have different roles and
8

responsibilities for carrying out work in organisation that are liable for final result achievement.
They need to do perform work like checking during in and out, handling complaints, providing
high quality services.
Planning Performance Monitoring- This is considered as last area of business for
improvement. Each and every activity of employee and staff should be monitored by
management to check whether set objective and goals has been achieved or not. There are
various methods which can be used by Thomas Cook Group for performance monitoring are
management by objectives, 360 degree appraisal, feedback form and others. The monitoring
should be done on continuous basis for improvement in case of any issues by providing training
and development in proper manner.
M2 Evaluate the effectiveness of areas of the business stipulated in contribute to organisational
growth
Effectiveness in business is concerned with quality if outcomes which derived from
activities finished through employees and managers (Rodriguez, Peterson and Krishnan, 2012). It
is necessary in offering high quality of services to consumers on the basis of needs. Thomas
Cook Company performs its activities in positive manner at marketplace. If an organisation has
the better effectiveness in marketing and finance departments then it can serve the attractive
services to consumers which help so that they can contribute towards increasing brand image.
With the help of this, growth rate of company will be increase and retain for long time period.
D2 Plans developed can lead to an improvement in the business
A plan is related to detailed proposal for attaining something. From preparing plan,
company is able to performing activities in systematic manner (Schaufeli and Taris, 2014). It
gives proper guidance towards doing business activities within business and also support them
during taking decisions. The manager should motivate employees to follow plan when
performing activities. It will help in make improvement in business and attaining goals.
TASK 3
3.1 Current skills of management and staff
Management consists activities of setting strategy of company and coordinating efforts of
staff members. Management and staff bothy are the main components of an organisation. They
both give their contribution in attaining set objectives. Management skills are certain abilities or
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attributes which an executive should be posses to fulfil particular tasks. Management of Thomas
Cook motivate staff to focus on completing tasks in an effective manner. Current skills of
management and staff of Thomas Cook mention below:
Management Skills
Planning- It is an ability to organize the activities in systematic manner with set
guidelines (Stoupa and et. al., 2015). It is a procedure of developing set of actions to pursue for
attains set objectives with available resources such as labour, money and time. Management of
Thomas Cook develops an effective plan so that employees can work accordingly.
Motivating- It is one of the most necessary skill of management. Under this, management
aids in bring desired behaviour from staff members. Management of Thomas Cook use extrinsic
and intrinsic both motivation methods.
Problem-solving- A better management should have ability to determine and solve issues
quickly which can arise at workplace. In management, problem-solving consist determining
certain issues and search effective way to handle them by getting better solution.
Decision making- In an organisation, managers makes large number of decisions in
favour of business. The management of Thomas Cook involve employees in decision making
process. In addition to this, making right decisions help company in gaining success. A better
management requires to be possessing right decision making skills and it will help in attain
organisational objectives.
Staff skills
Teamwork- It is most necessary skill that should be in employees (Svidronova,
Vacekova and Valentinov, 2016). In a team, all employees are working together for attaining
common objectives. Teamwork indicated ability to be collaborating with more people in an
effective manner.
Communication skills- Communication is a two way process and it is essential skill. The
top performers shine in all the areas and also challenge continuously themselves towards
improvement from any shortcomings. Employees can be trusted to be facilitated direct staff
meeting and productive group discussion. It is necessary that communication should be better
among all employees so that positive environment can be maintained at workplace.
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Critical thinking- It is an ability to understand, measure and also interpret information to
draw valuable conclusion. Staff members will have to be assessing conditions as well as solve
issues. They require thinking in logical manner and also making some sensible judgements.
These all are the most necessary skills needed through management and staff in order to
implement tasks in an effective way. It will help in make improvement in performance level of
business. Through this, market share of Thomas Cook will be enhanced in competitive market.
3.2 Plans for the development of skills for management and staff
In order to run business and their activities and operation, both management and staff
requires skills which can help them to achieve their set goals and objectives (Zanko and Dawson,
2012). This can help them to improve their work performance for better outcomes. They can
make plan for improving existing or current skills of management and staff. Here, Thomas Cook
has made development plan for improving existing skills of management and skills which are
described below:
Learning
Objectives
Target
Proficiency
Development Opportunities Time Scale
Planning 10 In order to improve planning skills of
management, respective organisation
should involve their manager in each and
every activities and work which helps
them for better goal achievement. As this
helps in creating self confidence within
them that leads to better planning for
business.
45 to 60 days
Motivating 10 It is the most important skills which
should be improve by Thomas Cook by
providing incentives, bonus and rewards
to their manager for accomplishment of
objectives. This can help them to get
attached to organisation which also
declines staff turnover.
35 to 70 days
11

Problem-solving 10 It is essential skills which are required
within management as environment is
dynamic which keeps on changing so
various issues arise in organisation
which needs to be solved. Thomas Cook
can improve their problem solving
trough participation and conducting
training and development in effective
and efficient manner.
50 to 80 days
Decision making 10 There are various decisions which need
to be made by management on daily
basis for effective outcomes. If decisions
are not taken properly then it cannot
achieve their goals and objectives. This
can be improving by involving each and
every member in decision making to get
appropriate solution to arise problems.
55 to 90 days
Teamwork 10 Teamwork can assist Thomas Cook to
achieve their goals and objective in
effective and efficient manner. With help
of teamwork effective output is achieved
in proper manner. In order to improve
teamwork of staff, regular training and
development should be provided in
systematic manner.
45 to 60 days
Communication
skills
10 It is most essential skill of organisation
as each and every work is done through
communication. Here, Thomas Cook
needs to have effective channel of
communication such as written, oral,
30 to 70 days
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meeting and others. The working staff
should be able to communicate in order
to know about their roles and
responsibilities for better result
achievement. This can be improved by
providing training to staff and including
them in making decisions.
Critical thinking 10 There are some situation arise in
organisation which need to be solved
through critical thinking. It helps to draw
conclusion to arise problems in effective
and efficient manner. Thomas Cook
need to increase critical thinking through
brainstorming session and others. They
should be checked on regular basis and
improvement should be checked.
25 to 75 days
M3 Analyse the effect current experience, skills and abilities of management and staff may have
on the business
Skills, abilities and experience of management and staff help in performing the business
activities in an effective manner. These develop the negative and positive impact on business
operations as well as productivity. The management skills are helpful in motivate employees,
take effective decisions, develop positive working environment at workplace. On the other hand,
if employees will have the better skills the n in this case they will work in a team and focus on
attaining the common objectives. In this manner current abilities, experience and skills of
management and staff develop positive impact on performing business operations and increase
growth of business in significant manner.
D3 Evaluate the various methods that can be used to develop the skills of management and staff
It is very important for Thomas Cook to develop their management and staff skill in
effective and efficient manner. There are various methods which can be used by respective
13

organisation to improve them such as training, mentoring, coaching. Here, Thomas Cook has
used training development methods for improving skills of management and staff in proper
manner. With help of training session, they can enhance skills and knowledge for better work
performance to achieve set outcomes. Similarly, this training carry some disadvantages as it
creates stress and pressure on manager and staff for attending training on regular basis. Due to
this method they cannot manage other works which are assigned to them in systematic manner.
Therefore, training method carry both advantages and disadvantages for organisation.
CONCLUSION
It has been concluded from above mention report that business health check is situation
under which business strategy can be running. It helps in measure performance level of business
in relation to business sales, market share and responses of other rivals. It will help in attract
large number of consumers and retain them at marketplace for long time period. The Business
Health Check is mainly used through organisation for analyse internal and external environment.
Through this, management can able to take the better decisions and focus on enhance growth
rate. The PESTLE analysis has been conducted for evaluate external environment of
organisation. Current skills of management and employees help in performing the business
activities and also focus on attaining the set objectives in an effective manner.
14

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