Analysis of TUI Airways' Business Environment and CSR Practices

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Contemporary Developments in Business Management
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Executive Summary
The airlines company Thomson Airways is known for carrying the scheduled charter trips to
Europe, North America Asia and Africa. There are issues that can boos the company to take
strategic decisions. These strategic decision influences the business to improve the efficiency
and productivity of the business. TUI Airways is known for the provision of carrying 11.2
passengers. This airline is also known for providing low cost charter flights from Europe to
Ireland. Therefore, with the use of the macro and micro environmental factors, these areas are
developed for providing growth to the business performance in the company. Hence, with the
better understanding of the business, the company provides an opportunity to the passengers
to better travel flights for the company. Therefore, it is important to note the various elements
that cater to the development of the business.
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Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................5
Task 2.........................................................................................................................................9
Conclusion................................................................................................................................16
Reference List..........................................................................................................................17
Appendix 1...............................................................................................................................19
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Introduction
Business development is related with the demand in the market and the analysis done by the
company, which is looking to enter the market or gaining profit. The majority of the cases it
is seen that an association of the entire team needs to be managed in a proper manner, so that
a proper deduction can be done. Business contemporary development needs to be in a
properly aligned process. There are many contexts where the service providing authority
needs to make sure that they are well equipped and managed in order to raise funds from the
market. Contemporary development requires understanding of the intra-organisational
ambience, where the external factors affect the subtle aspects that make changes in the
system accordingly. The company that has been chosen in this case is from airline industry
and the name of the organisation is TUI Travel Airline also known as TUI Fly. It is a British
organisation, with market reputation for providing proper support to the people.
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Task 1
Give a brief overview of the primary external influences to which the organization is
subject and briefly explain the particular importance of each to the organization.
TUI airways also known as Thomson Airways is known for its provision of scheduled and
charter flights from United Kingdom and Republic of Ireland (Tui.co.uk. 2019) the airline is
famous for providing feasible destination to passengers in Europe, Africa, North America and
Asia and is based in the United Kingdom. The organization is subjected to primary
influences that have an impact on the growth of the company (Westphal, 2017). These
external influences are accountable for the growth and the maintenance of its organizational
policies. Hence, it is important to take into account all the areas that can have an influence on
the development of the business. As per the record and statement of the business, there are
issues such as mid air emergency that can deviate the growth of the business. Hence, the
airline company should make the use of the policies that would influence the growth of the
company and the business. The firm that operates in a macro environment is exhibited to
these political legal, social, economic, environmental and technological policies. The
organizations are capable of pertaining to the growth of these business forces and gradually
develop to become a successful business. These primary influences can be comprehended
with the use of the PESTLE analysis.
With the better understanding of these external influences, the company will be able to cater
to the roles and responsibilities of the business. Hence, with the understanding of this primary
external influence, the company will be able to cater to the growth and development of the
business. The operation in the macro environment of the business will outline the various
policies that might cater to the growth of the business organization. Therefore, the various
influences that are registered by the business will be discussed for a better and comprehensive
business understanding. This strategic tool implicates the growth of the business a growth in
business and its competitive advantage (Szydlowska, 2017).
Political Influence
The airline company TUI is affected by the
political influences that are in operation in
the United Kingdom. With the recent
political changes of the BREXIT, the
company has been subjected to negative
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growth in the business (Maertens, 2018).
There are elements that have incorporated to
the growth of the business. Due to the recent
political drama, there has been the rise in the
rate of political disturbances in the business.
The political factors are important for the
growth of the airline company. However,
BREXIT has proved to be challenging to the
economy of UK. There have been a shift in
the labour force and working culture of in the
aviation industries.
Economic Influence The economic factors are also accountable
for the business operations of the company.
This important external macro element
provides a glimpse in the growth of the
business. The airline TU or Thomas Airways
has faced a considerable amount of issues
that are prevalent in the company. The
economy of UK had faced a recession in the
year that contributed to the downfall of the
company. There has been inflation in the
company that arose to around 3.1% in the
year 2017. The airline company is being
affected with the rise in the inflation rate.
Hence, this leads to the growth in the
economic feasibility and expansion of the
global airlines in the company.
Social Influence Social influences are the originators for the
growth of the company. TU airways are
influenced by the changes in the traditional
lifestyle of the company. Therefore, with the
understanding of the business the airline
company is subjected to the elements that are
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in tune with each other. The airline company
should improve on its customer satisfaction
policies. They should dedicate their team
towards working for the betterment of the
business and the company. With the
introduction of these elements, the company
is able to comprehend the pricing policy that
is in operation in the airline company.
Technological Influence Technological influences are primary factors
that indicate growth in the business.
Therefore, the TU Airways contribute to the
growth of the business by the introduction of
better-televised technology. The UK is
known for being advanced and
technologically developed. This is therefore
comprehended by the use of better
technology to understand and improve the
growth of the business.
Environmental Influences Environmental influences have an effect on
the growth of the business. The TU airways
incorporate the utilization of various policies
that have an impact and influence on the
growth of business (McLachlan et al., 2018).
The demand for the chartered company
services are institutionalised by the use of the
corporate social responsibility by the
company. The economy of UK comprises of
a diverse consumer market. The airline
company increases demands in the customers
by reducing the price of their flights. This
social factor also influences the company to
have a better understanding of the industry.
The company also keeps in mind the various
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climatic changes such as global warming and
reduces the emission of harmful chemicals.
Legal Influences The important policies that can initiate the
help to the airline staff in the company also
enforce important opportunities in the growth
of the company. The airline companies are
subjected to laws such as Employment Act
1996 and Equality Act 2010. This also has an
influence on the company employees and
maintains the security for them. The laws that
are in operation in the UK also safeguard the
interest of the airline staff by introducing
leaves for them.
Table 1: Influences of the external business on TUI Airways
(Source: Created by Learner)
Therefore, these important factors initiated growth in the development of the company and its
business standards. The airlines company makes the use of such contemporary development
to cater to the better growth of the business. Hence, the company is positively affected by
these influences. The rise of BREXIT also led to the improper and ineffective growth of the
business. Therefore, these factors are significant as it catered to the growth and development
in the business. They also implement new strategies and changes that affect the growth of the
business.
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Task 2
Selecting a theme
The report is going to focus on the corporate social responsibility and sustainability of the
organisation TUI Fly. It is a necessary segment to be taken care of, because this kind of
ventures are necessary for providing better kind of ambience to the people who are getting
passively affected by the organisational activities. The self-regulation process is termed as
CSR in the public sector and it is a necessary venture to be taken care of in order to have
better kind of passive marketing effects. The social responsibility of an organisation and
taking actions in accordance with that magnifies the possibility of having better return on
investment properly. Doing business in a geographical area often affects it and it is necessary
for an organisation to regulate their activities to magnify positive outcome.
Corporate Social Responsibility and Regulation of different business ventures often affects in
a drastic manner and in the long run this positive approach heightens the company shares to
the maximum level. Apart from the financial benefits, one organisation derives other benefits
too and some of them are, good relation with the consumers, a positive image, being a
thoughtful organisation and many others.
In relation to your chosen theme:
i. Analyse its relevance to your chosen organization and how it influences policies and
decision-making within your chosen organization or industry-sector.
It is a normal fact that any organisational development makes a proper impact on the process
of policymaking and many other things. There are many segments where it is seen that the
issues associated with the policymaking is directly related with the CSR of an organisation.
The decision-making process and the issues associated with that are analysed in this part to
make logical deduction and improvements in the organisational policy (Ni and Van Wart,
2015). CSR often gives a proper direction to the management to regulate their activities and
become an environment friendly organisation.
In case of the any transportation organisation the management needs to track down the
activities, which are harmful for the environment. In accordance with Crowther and Aras
(2019), the organisations in the travelling segment needs to focus more on the emission rate
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because this affect the ambience where they are dealing in and this hazardous effect is not
reflected in any accounting or auditing process and most of the cases these remain unnoticed.
From the opinion of the researchers, it can be said that the CSR ventures of TUI Travel
Airline needs to be incorporated with proper kind of evaluation so that the management can
take relevant steps to normalise the issues. TUI Travel Airline needs to focus on the emission
rate so that they can normalise it with proper kind of rectification steps.
In any CSR venture, one organisation finds out what the laggings are and how they are going
to be normalised. TUI group has many business ventures and designing a proper policy for
every one of them is highly necessary for them. The CSR will give necessary data, which the
policy makers should adhere. For an example if the rate of carbon emission is higher than the
normal level then during the policy making period the management has to focus on the
incorporable technologies that are essential for mitigation of the issues (Pigors and
Rockenbach, 2016). In case of TUI Travel Airline, CSR is going to provide the areas where
improvements are needed apart from the environmental issues. For an example, the
stakeholder analysis and keeping a proper communication with the stakeholders can be taken
into consideration. The CSR activities are going to give a logical approach to the
communication prospect with the stakeholders. Issues like reluctance of the service providers,
lack of guidance and many other issues can be found in this process and during policymaking
period of TUI Fly, the management needs to adhere to all these facts to generate a proper
return on investment. This is going to be a beneficial aspect for communication and revenue
generation aspect.
From the viewpoint of Haddad and Menassa (2015), decision-making process is highly
related with the CSR process, because the ventures provide information on where the
organisation is affecting the nature and how it is making a negative impact on the minds of
the people who are experiencing the change. The decision making process becomes easier for
the management and selection of tools for the venture becomes easier. In case of TUI Fly, the
management needs to make an audit of the CSR ventures and find the issues that are being
faced by the stakeholders who are in connection with them. In the long run the issues faced
by TUI Travel Airline, especially those that are related with the consumer connection are
going to be minimised properly.
In terms of having a proper staffing in the organisation the TUI Travel Airline needs to have
proper CSR. In order to maintain a proper kind of organisational staffing the management
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needs to make proper kind of communication with all the staffs and the issues faced by them
needs to be managed as well. The CSR venture is going to provide proper information of the
employees who are working in the environment and only effective ones of them are going to
be promoted as well. The management needs to make policies in accordance with the results
of the CSR report. They can include better career opportunities for the people who are
working with proper ethics and efficiency. The employees have to adhere to the facts in order
to make proper kind of changes in the system. The management needs to work in an efficient
manner in order to analyse the reports of the CSR to have better detail on the organisation’s
employee performance to magnify the potential of the employees working in it. In accordance
with Haddad and Menassa (2015), the management is solely responsible for the motivation
aspect because they are allocating the tasks and they should know it which employee is
effective for a particular job. The process is going to be the best option to be taken into
consideration and in this manner an idea is going to be generated which will relate the
efficiency matter of employees with the other aspects.
One of the major things is having a proper kind of cost saving technique. The management
needs to make proper analysis of the issues and them they should look for the segments
where the company is not running in a cost effective manner. The majority of the cases it is
seen that the issues regarding the cost effectiveness is directly related with the taken
initiatives. If the ventures of TUI Fly go wrong then the possibility of having issues related to
the cost management will get high too. The CSR policies give proper idea of resource use,
which is the most important thing in almost every aspect. In accordance with Quazi et al.
(2016), the management needs to incorporate the resource evaluation and cost of the resource
use in order to have betterment in the cost effectiveness segment. The policies of TUI Travel
Airline should include resource incorporation aspect in order to minimise the misuse of it. In
this process, the misuse of cost is going to be nullified as well. In accordance with the
opinion of Mahmood et al. (2013), the management of an organisation needs to abide by the
limitations of the resource use, because without knowing what the importance of it is the
management can face severe issues during goal accomplishment. The problems associated
with the technical segment needs to checked precisely in order to have better and analytical
viewpoints from the prospect of the organisational development via resource misuse
management.
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ii. Critically evaluate the effectiveness of the organization’s response
The involvement of the external factors can be taken into consideration as well. The majority
of the cases it is seen that the economy, environmental factors and others make a huge impact
on the development of the issues. Considering the issues the organisation TUI Travel Airline
can have a major impact on the development aspect from the organisational context. The
factors mentioned above are one of the prime aspects that are associated with the proper
development of the organisation. From the viewpoint of Boccia and Covino (2018), it is seen
that the management of any organisation do not consider the fact that the issues associated
with the economy of a country can be effective as well. The CSR ventures of an organisation
blows impact on the economic environment too.
In case of TUI, the issue associated with the economy was drastic too. The CSR ventures of
the organisation states that there are 277 million people are working throughout the world and
it is a big achievement. The socio-economic condition of impacts the functionality in a
positive and negative manner and in this case, both have been reflected vividly. There are
some countries where tourism is the main business and giving mobility to the economy. The
tourism industry produces jobs for almost every person and among the applied people, the
most efficient people are selected to be a part of the organisation and in this manner, the
organisation TUI Travel Airline makes an impact on the socio-economic state of the country.
From the data of the World Tourism Organisation, around 9% GDP of the world is depending
on the tourism segment. It is one of the most productive segments where the majority of the
people are trying to invest. The management has found the opportunity and they are making a
proper deduction of what needs to be done in order to capitalise the opportunity (Alvarado-
Herrera et al,. 2017). They have strengthened the customer service and magnified the
potential of customer satisfaction matter. Using different tools and unique process of
approach the management has incorporated changes, which has affected positively.
There is only one aspect to be taken care of and that the negative factors. The newly
considered policies and tools have made changes that are incomprehensible for some of the
orthodox workers. The adaptability of adapting the changes is a quality, which the
organisation is lacking. The issues are the employee density. The organisation needs to make
changes in the policymaking in context to have better kind of recruitment process. From the
viewpoint of Kennedy and Victor (2017), training the people should be a part of it and in the
end a good kind of statement can be created where the organisation is going to give a proper
direction of approach for an overall development.
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