Business Health Check Report: Thomas Cook's Performance

This report provides a comprehensive business health check of Thomas Cook, a leading multinational tourism firm. It begins by analyzing the company's objectives, vision, and mission, followed by an examination of factors impacting the business, including political, economic, social, technological, environmental, and legal factors using PESTLE analysis. The report also applies Porter's Five Forces and SWOT analysis to assess the competitive landscape and internal capabilities. Furthermore, it evaluates the effectiveness of the business across various areas such as marketing, sales, and finance and proposes plans for improvement, including skill development for management and staff. The report concludes with a summary of key findings and recommendations for enhancing Thomas Cook's business health and long-term sustainability. The report also discusses Ansoff analysis and SMART objectives to support the analysis.

Business Health Check

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
AC1.1 Analyse the objectives of the business............................................................................3
AC1.2 Explain factors that impact on the business.....................................................................5
AC1.3 Determine potential improvements to the business organisation and/or operation.........8
AC2.1: Review the effectiveness of the business.....................................................................10
AC2.2 Develop plans to improve the business, justifying their value......................................11
AC3.1 Evaluate the current skills of management and staff.....................................................12
AC3.2 Devise and justify plans for the development of skills for management and staff........13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business health has become critical issues in every business whose focus is on expanding
operation of the firm on to the global level. Especially in case of tourism, business is need to go
for health check such as their capacity to build profits, income and growth expectancy for longer
time period (Liu, 2014). Health check also involves checking internal and external forces of a
business. So, tools & techniques such as market analysis, internal capabilities of the business
plays its major role to check out growth suitability of a business. This report will be carry on
Thomas Cook which is one of the leading multinational tourism firm headquartered in the
London, UK. Its name is renowned in an area of providing holiday packages, aviation business
and offering trips and also travelling support to the people. The aim of this project is to know
health suitability of the business and also how it will be go long. This has been taken to realises
issues such as flux in business operation and also check out lack of the strategic making.
This report has discussion on objectives, vision & mission and objectives of the firm.
Also, report will also focuses on the Pestle, SWOT and porter five forces model. Also, report has
discussion on Ans-off analysis and SMART objectives to support this matrix. Also, assessment
will cover effectiveness of the business such as products or services, marketing, sales, finance,
sales, staffing and business image.
MAIN BODY
AC1.1 Analyse the objectives of the business
Business objective define the goal and objectives of a company which are to be
achieved in certain time period. It is a measurable step used by organization to accomplish the
plans (Namba and et. al., 2014). The companies objective provide a layout which includes in
how long the company will complete the tasks and how much profit will a company make.
Objectives and goals differ from one another such as objectives defines minimising the expenses,
reducing workforce, making a profit and on the other hand goals are statements regarding future.
In this assignment Thomas Cook is chosen as hospitality sector, it is a travel agency formed on
19 June 2007 after the merger with Travel Group Plc. Thomas Cook group was founded in 1841
headquartered in London, UK.
The company provide different services to the customers such as Charter and scheduled
passenger airlines, package holidays, cruise lines, hotel and resorts. It has various subsidiaries

involved in different service sector. In the year 2007 Thomas Cook and my Travel Group Plc
were merged. After merger both companies divided the shares such as 52 % shares were hold by
Thomas Cook and remaining 48% shares by the travel group. Both the companies announced to
make expected savings over £75 million a year (Miyoshi and et. al., 2014). The companies were
listed in London stock exchange under the name of Thomas cook Plc. In the year 2008 the
company signed with Octopus media technology to provide online videos. Net worth income of
the company is £163 million.
Objectives of the company
Thomas Cook is leading tourism industry which serve globally. Its main focus is to
satisfy the customers with variety of product and services. The company have some long term
and short term objectives which are to be full-filled for companies growth and sustainability such
as:
Long term objectives
 expanding the market with different services such as airlines.
 To provide support & development in tourism sector.
 To promote tourism practices in the economy. Promoting online bookings to save the time and easy online payments.
Short term objectives
 To encourage the use of Thomas airlines.
 Proper flow of information for every segment of customers
 Creating brand awareness among the customers to retain them for long period of time.
Mission and Vision of the company
Mission defines organizations objectives and focuses on the current tasks which should
be accomplished properly to achieve the goal and objectives. Thomas Cook also defined its
mission as
 To provide customer satisfaction through full-filling the needs and expectations of guest
as per their demands (Girsang and et. al., 2017).
Vision statement defines the future position of the company such as where the company
want to see its growth opportunities in coming time.
 To deliver the best services to all the sectors
 To retain its customers for future by creating brand loyalty.

 To deliver right information to customers for the sake to manage brand goodwill.
To expand its areas all over the globe and want to achieve success in tourism industry.
AC1.2 Explain factors that impact on the business
In the current time, business entities are doing their working into the different area such
as tourism, health care or selling physical good to the people. In regards to this, they used to face
problems such as decrease in revenue, decline into growth and decline in the sales of the firm. In
this, internal and external factors such as Pestle, porter five forces and Swot analysis will taken
care to ensure about suitability and longevity of a business operation for time duration. Using
Pestle, influences will give to understanding political, economical, social etc., Swot to know
internal capabilities of a business firm (Rita Miller CPA, 2014). Porter five forces will uses to
know competitive sources and advantage of the firm at potential sides. Critical analysis of all
three model and theories are as follows:
Pestle analysis: A tool used to analyse and monitor the macro-environmental (external)
factors that have an impact on an organisation. Its focus will be on political, social, economical,
technological etc., to get complete knowledge about external forces or pressure to the business
on both domestic as well as international platform. Analysis is as follows:
Political: The political factors which puts impact on profitability or chances of survival
of this firm is diverse and which includes instability, flux into government regulation etc., which
have caused pressure business units to operates. In UK, political level of risk has been varied
from instant changes into present political program to civil protest and instability to major
decision took up by the authorities. Bureaucracy and kind of interference into the travel & leisure
industry by the government of UK is threat for Thomas cook to operates in travel sector at a
wider zone (Rolleri and et. al., 2016). Expected impact would be chance to loose existing
customer's and loss of revenue, a a reason of increased bureaucracy.
Economic: Macro factors such as inflation rate, saving rates, interest flux, level of
foreign exchange & product economic cycle have its own influences on business functioning of
the UK. As, tourism is high in UK, but flux into the pound sterling has made UK little costly as
compared to other nation. This is an opportunity for Thomas Cook to understands and also
realises interest rate, inflation rate, exchange condition of the UK to structure their own policies
to keep business at par. If in case any factor is comes to down level, then it would be critical for
Thomas Cook to maintain business health for long time.

Social: Societal culture such as demographics or skill level has put major influences on
UK cultural aspects along with how business entities works in that pattern (Verhaeghe and et. al.,
2015). Also, shared belief and attitudes of the people has great influences on the business
operation of the Thomas Cook. I the tourism sector, leisure interests, attitudes of the UK people,
if positive or negative, cultures has put down major impact on continuation of the business
performances in the UK region. The impact is impact on business health of the Thomas Cook.
Technology: Usage of the technology such as Apps, website and e-booking are some of
the technology adaptation, which has taken by Thomas Cook in case of giving convenient
support to customer and people who are expecting complete products or services from leading
firm. Due to technological change, impact has been led on cost, value chain and profit building
capacity of this firm. This has put on customer regulation and business expectancy of the firm.
The impact of these technological factor would be severe, in case proper action plan and decision
making would not be taken.
Environmental: Different market have varied norms or an environmental standard which
can simply impacts profit making ability of a firm (Kinderman, 2016). Climatic condition of the
UK is fluctuating on time to time basis, as like rain can be comes anytime, winter and less
summer season, because of which people of different nation mostly denied to visit this places.
The good is that UK has less pollution, as compared to nation in Asia etc. Flux is the climatic
condition of the UK can impact business regulation of the UK on major side.
Legal: In the UK, legal framework and judicial institutions robust sufficient to give big
protection to an intellectual property rights of an organization. Factors such as Anti trust law in
travel or tourism industry, discrimination law, copyrights or trademarks, health and safety law
etc., are some of the legal regulation which has put influences on customers of the Thomas Cook
and led to decrease in its business operation at the bigger side of production and marketing of
their products.
Porter five forces analysis: This model is used to gather perfect knowledge about
industry attractiveness and competitive advantage to the business at the greater side of the
business. In the Thomas Cook, analysis of this model is as follows:
Bargaining power of the buyers: In UK, Thomas Cook is only travel firm, which used to
provide buyers with limited choices to avails services to buys service from that. In that situation,
buyers have no more choice for selection and decision making. Hence, power of bargain is low

and also customer of the Thomas cook are also loyal of their what firm offers to them. Here, risk
for business is currently low.
Bargaining power of the suppliers: Thomas Cook is also operates into the aviation
sector, which is one diverse area with large supply chain and different categories of the supplier.
To this travel firm, suppliers are used to supply food or beverages, equipments or technology for
benefits of the business (Saudi Arabian Oil Co, 2017). Different firms such as Virgin Atlantic,
British airways, Thomson etc., are also operating in same sector, hence, supplier has multiple
choice to supply their products at margin as per their own choices or preferences. In that
situation, bargaining power is high for suppliers and risk to business is also severe.
Threat of existing competitor: British airways is the national airlines of the UK which
has highest fleet size and with this, they used to avail services to their customer on frequent
basis. Virgin Atlantic also known for its brilliant customer services and on time departures.
Hence, this is threat for Thomas cook, as they have less fleet size, limited slot on airports and
suppliers, due to which their fares are high. Here, risk is high and cut throat competition also
covers under this.
Entry of the rivalry: In UK, Thomson and Easy-jet are two new entrants, whose focus is
on providing air travelling at low cost as well as focus on air based services such as food support
to the passenger at low cost and maintain cabin support at time to time basis. As, low cost will be
threat for Thomas cook to be get beaten off to operates business and even chances of business
shutdown. Th risk to business is high and severe in cost reality.
Threats of the substitutes: Easy jet is the substitutes for Thomas cook, as this airline is
focusing on low cost services to their present and future customer to grab market on higher basis.
Also, due to this, burden will be put down on action planning and also strategic making of this
firm. If Easy jet would offers food or beverages services in low cost, then customer's will also be
shifting to that location on major level of the business sides of an operations.
SWOT analysis: This is used to measures strength, weaknesses, opportunities and
threats of the defined business firm. An analysis of the Porter five forces models are as follows:
Strength Weaknesses
 One of the renowned firm engaged in
sector of travel and tourism.
 Thomas Cook provides affordable and
 Past conflict with supplier's, people and
bad customer post sales responses.
 Also, they refused to pay statutory EU

also services to their customer's.
 Firm offers services like Package of the
holidays, air travel, hotels, resorts etc.,
and
 Also, increased Brand image on global
level due to association with last
Olympics.
compensation to their customer's.
 Severe competition means limited level
of brand presence.
Opportunities Threats
 Thomas Cook have opportunities such
as work on global platform such as
Asia, Australian continent, USA etc.
 Firm has suitability to brings strength
to its airliner business and control cost
and attracts suppliers interest by offers
margins.
 Use of an e-booking, tracking order
status and company's own apps will be
super option to brings customer's near
to the business operations.
 Low cost rivalry and increased margin
rate are threat for the Thomas Cook.
 Severe competition into price area such
as Albion serving holiday packages,
travel product's etc., will be threat for
Thomas cook to continuous its business
operation at the top platform.
Summary: Thomas cook business health is accurate and still strong, as because of higher
customer loyalty & effective brand reputation. In game of service quality, cook is the leader, but
still competencies have to be gather while offering prices on priority basis. To secure health of a
business operation, it will be essential for Thomas cook to establishes strategic planing and
action plan to structures prices of their on an optimised basis.
AC1.3 Determine potential improvements to the business organisation and/or operation
In this, present time, business structures are looking for long lasting growth and potential
to carry out business operation for time period. When firm are selling any products or services,
they have to be ensure about increasing strategic position as well as strength to continues firm
activities for future to increases profit earning capacity of firms (Al-Turk, 2017). Every products

or items has its own life up-to which business depends to work or might be keep growth on long
basis. In order to ensure about growth, Ans-off model will be taken:
Market penetration: In this, firms are focused to sell existing products to existing
market. Price drops and maintain product quality is one major option, with help of which
products will be maintain to its flow. Thomas cook can cuts out prices of their holidays packages
along with keeping quality as one of the top priority to gather competitive position in market at
strong level. This is low risk bearing strategy, in which focus is more on product quality.
Product development: It deals with developing new product and sells in an existing
phase of market. This needs extensive research & development to find new idea or market to sell.
Here, Thomas cook will uses its competencies to launch its own e-payment gateway to transfer
money to other person either using wallet system and UPI link to share money from account to
account (Baddourah, 2017). Here, research & development on potential customer will be done
and technological assistances would be used to make wallet or UPI payment gateway before
launching of this in mobile apps format.
Sources: Ans-off matrix model, 2018
Market development: This deals with selling existing products to new market. This is one
of the potential strategy to get market & customer quantity to sell its products. Thomas Cook can
Illustration 1: Ans-off matrix model

utilises this strategy to brings new customer's to their airliner services who mostly travel by bus
and trains from one location to another within domestic regions. Price penetration strategy would
be suitable here, to brings new customer into that products. This can help to achieve business
competencies and also strategic positions.
Diversification: This is entirely different from all three and in which new products will
be launch to exact new market (Eich, 2014). As, this stage is consists of the heavy risk and loss
of existing people would be causes of this stage of Ans-off matrix. Hence, this is no more
suitable choice for Thomas cook for inclusion of higher growth into the business operation for
higher zone.
Choice of selection: Out of the complete analysis, this would be perfect option for
Thomas cook to go for adopting market penetration and also product development to check out
suitability and sustainability of the market structures on the priority basis.
AC2.1: Review the effectiveness of the business
Business effectiveness is defined as degree to which business firms are being measured
onto the basis of their objectives or aims that to be achieved along with managing risk, increment
of the revenue as well as controlling costs. In contrast, it is fully knows as measures on basis of
which business competencies and strength is used to be measures to accomplishes defined goals
or objectives of the business. In the Thomas Cook, different business area are consulted such has
products/services, marketing, sales, finances, staffing, business image and record keeping are
existed and on which clear and concise review is used to be done. The analytical review is as
follows:
Products/services: This is a part of a product tangibility or intangibility, which means
either good is seen or not, touch or feel. Thomas cook product's are mainly intangible in nature
such as holiday packages, Airliner services, travel agencies based support for longer time period.
These can be noticed or experienced at some extent such as experiencing customer services into
the flights, enjoying on holidays etc. (Yang and et. al., 2018). The features are that, certain
adaptation can also be brought to products or services and benefits of these can be optimised.
Marketing: It is an essential department for firm, whose focus is on selling, promoting as
well as pushing products to the customer's. This is the platform, where product is used to be
made identifiable to the customer's and also its trusted image is used to be communicated to the
peoples to generates final purchases or order for use. Marketing of the Thomas cook is focused

towards promoting their feasible and potential items such as holiday packages, Airliner services,
travel agencies etc., on an optimised basis and also makes perfect decision making on same t
built an effective image of business on productive level of an operations.
Sales: It is known as revenue station process, in which tangible and intangible products
are used to be sell to people and price will be taken from them in return of efforts done by the
business either in production or implementation. Sales Dept. of the Thomas Cook has highly
qualified, skilled and also adaptable, to sell anything and also at anytime. Selling Dept. of the
Thomas cook is required to structures policies which would suits them to makes selling more
ease and convenient.
Finances: This is one of the most necessary aspects of the business whose role is to be
generates funds or money to sell or promotes the business products on the nominal side of the
business operations (Glova and et. al., 2014). This has own department and also have own
strategies to records financial entry. Finance is most used to purchases something, at-least which
has some defined values or output that can be derived out of the same.
Staffing: This area of the business involves recruiting and selection of the right people
and giving them training & motivation to get their advantage at the cost of the company. Using
staffing, Thomas cook have an expectancy to gather right people with right skill at right time for
benefits of the business firm and gives them training to accomplishes its given targets in accurate
point of time to accomplishes strategic goals or objectives.
Business image: This is one of the predictable sources of creating brand awareness
which deals with enhancing identity of the brand at the longer side and also deals with extending
image of the business to enhances physical image of the business operation on higher level.
AC2.2 Develop plans to improve the business, justifying their value
Business planning is the clear and concise process for engaging resources, strategy and
action plan to accomplishes defined goals or targets to achieves strategic position of business at
longer side. With support of their business planning, firm can do overall planning on marketing,
sales as well as productivity, in case if business entity is need to accomplishes its defined goals.
In context of the Thomas cook, complete plans for regulating this business and concerning over
all area of an operation are as given under:
Planning sales, marketing and productivity: All three are important sector for every firm
which deals with doing planning for doing marketing, selling of the products and production of

the defined goods or services. All firm used to analyse their vision or mission and strategic aim
to do all such three (Jansen, 2014). Thomas Cook used to do analysis & compilation of all
resources with help of which sales can be planned accordingly and also effective sales promotion
as well as product awareness in an effective manner.
Planning financial management system: Thomas cook is one of a leading firm in the
area of revenue generation as well as how they used to manages their financial outcomes using
its accounting format structures or format. Thomas cook uses accounting standards and norms
with help of which they either uses book keeping to maintain entries. This leading travel &
tourism firm considers financial year of 1st April to 31st March to records the financial entries
and accounting records into the proper manner.
AC3.1 Evaluate the current skills of management and staff
The organizations require skills to accomplish task effectively, managers and employees
are considered as human resource for the companies. They should have some techniques which
make them effective managers. Thomas Cook manager's define task and activities which should
be accomplished by the employees. Here some skills are explained as: Technical skill: It is also defined as hard skill which includes Big data analysis, technical
writing, coding & programming project management etc. Technical skills plays a crucial
role in Thomas Cook in operating specific task such as computer programmes and
analysis of data which is stored in the form of coding. These skills help in organizational
promotional tool through social media coverage and by advertising the services to attract
customers. Managerial skill: These skills are defined as certain capabilities and abilities of
employees and managers in order to accomplish task of organization. Management skills
are also considered as soft skills these can be build through learning and practical
knowledge (Anerousis and et. al., 2014). Thomas Cook managers foster good skills to
handle external and internal environmental problems. Management skills are very crucial
for different levels of a company from top to first level managers.
 Operational skill: This skill defined the programmes, established for current skills gap.
Here the proper selection of tools are determined for managing the conflicts in an
organization. The leaders of Thomas Cook facilitates proper training skills to execute the