Business Environment Analysis: A Case Study of TUI Group's Performance

This case study examines TUI Group's operational environment, including the effects of the pandemic and the government's recovery strategies. The report details TUI's background, organizational structure, and the impact of internal and external business factors. It analyzes the microenvironment, focusing on customers, suppliers, and competitors, alongside a STEEPLE analysis of macro factors. The study highlights the impact of the pandemic on the tourism sector and the role of government recovery plans in supporting the industry. It also provides recommendations for TUI to maximize benefits from the recovery plan, emphasizing the importance of market analysis, customer preferences, and competitive advantage. The conclusion summarizes the key findings and implications for TUI's future.

Case study report

TABLE OF CONTENTS
.........................................................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Section -1....................................................................................................................................3
Section -2 ...................................................................................................................................4
Section 3 .....................................................................................................................................5
Section 4 .....................................................................................................................................6
Recommendations.......................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the total of the people, organizations and the other forces
that are outside the industry but affects the working of the business in long run. Also, the present
report is based on the TUI groups that is specialized in providing variety of the travel packages
to the customers all around the world. Also, company is best known for there services it offers
that makes it unique for competitors and also known for providing best of customer satisfaction.
Moreover, report will provide description of company background, number of employees,
organizational structure, leadership etc. into detail.
Furthermore, the study will identify the impact of internal business environment on the
working of the business. Also, internal business or micro environment is one that consists of
various elements that are present inside the firm and affects on large scale. On the other hand
macro or external business environment consist of factors that are present outside and are out of
control the business. Thus, the report will highlight the impact of such factors on company
during the time of pandemic and will also specify the role and impact of government recovery
plan for tourism sector. Lastly, the study will recommanded certain improvement suggestions so
that the maximum benefits might be gained by TUI from the recovery plan in long run.
MAIN BODY
Section -1
Thomson Travel Group plc (TUI) was one travel agency that is headquartered in Luton,
United Kingdom and is having travel experts that provides the helping hand regarding any travel
query or services 24×7. Furthermore, for all its clients the hotel is hand-picked by team experts
that assures that best customer experience is been provided. Moreover, it is public limited private
sector organization that come under tourism sector and is known as the world leading travel
leisure groups among most of the travel companies. Also, the company is having more than 30
million customers around the world and offers 180+ worldwide destinations to the customers
around the world (Jena, 2020). Furthermore, in certain reports I was known that currently TUI
group is having approx 67000 employees or travel experts that consists of travel agents, cabin
crew, holiday representatives and much more. Also, top competitors of the company currently
are cruise line, Norwegian cruise line, invited home etc. Thus, all these competitors compete in
the market to offer variety of travel services to their respective clients that is better than others.

Moreover, to attract more number of the customers they are focused on constantly analysing the
customer choices or preferences so that based on that offers or best package tours might be
offered so that customer loyalty might be maintained. Also, TUI group has the support care
foundations that independent charity that is basically formed to protect working of holiday
destinations. Moreover, it is also known for the world best leisure airline that is having highly
trained cabin crew that is continuously aiming in delivering the top service. Furthermore, the
cited company is currently following the Hierarchical organization structure where there are
clear lines of authority and instruction follows from the top to down approach and each
individual employee working in the group knows what is expected out of him and what are the
ways through which it would achieve certain organizational objectives (Ashrafi and et.al., 2019).
Hence, this structure has allowed the TUI groups to exercise the best power on employees and
also maintain the required leadership so that there is no wastage of resources. Furthermore,
through exercising the right leadership the firm is able to reach the greater height of success and
also able to make the existing employees feel happy and satisfied in the long run.
Section -2
In the current events like the pandemic the tourism sector was heavily impacted in terms
of internal working and it was seen that most of the revenues have been decreased on large scale.
Furthermore, in the context of the cited company it can be said that due to decrease in profits of
the business to travel restrictions have created major problems in covering the operation
expenses for the longest time (Latan and et.al., 2018). Moreover, due to unavailability of workers
at the office and remote working have further created problem for TUI group as management
was facing problems in establishing the clear communication with large number of employees.
Also, sue to the limited resources the company was unable to organize the training programmes
for employees and was facing the difficulty of retaining the old employees in the company due to
limited amount of profits. In-spite of having some kind of relaxation in the pandemic period
people were not interested in travelling due to fear of spread of virus. Thus, for the company like
TUI that is operating on large scale it was very difficult to manage the internal working
environment so that employee remains motivated and are able to introduce innovative ways to
promote the business in most effective manner in times like pandemic.
However, after the pandemic the government is systematically putting the efforts so that
tourism sector is developed once again and also this sector is able to generate lot of employment

opportunities for the potential employees that wish to wok under this sector at various job posts.
Further, in context of the recovery plan developed by UK government to uplift the tourism
sector after the pandemic it can be said that it has been developed so that plan is able to assist
and accelerate the tourism sector sand is focused on rebuilding the tourism within the UK.
Hence, through such initiative TUI would be able to work smoothly through the government
incentives and supports and attract more customers through launching various offers and
discounts after the pandemic (Brammer and et.al., 2020). Moreover, the government has
launched new rail pass and vouchers to promote the domestic tourism to the outsiders and thus
this voucher scheme would help in growing more sustainable travel for customer. Also, through
development of the such strategic plan it will allow TUI to have positive impact on the
operations' as it will help in building the required resilience and international competitiveness so
that the firm is able to maintain the competitive advantage for the long period.
Section 3
From the UK recovery plan the TUI was able to attract more customers towards the
business and hence it was observed that the hotel occupancy rate that was going down during the
times of pandemic also rose to certain extent. Also, government main motive of such plan was to
support the hospitality and tourism sectors that has been heavily impacted through the COVID
19. Furthermore, this recovery plan has helped in driving growth through allowing the customers
to stay for the long time and enhancing the customer experience through introducing proper
precautionary measures in hotel facilities and other areas to make people safe during the time of
visit (Al-Fadly, 2020). Also, plan has ensured TUI group suppliers in contributing to
enhancement and conversation of the country historic and natural heritage by keeping in mind
other micro factors so that maximum returns might be generated during the times of pandemic.
Also, the micro environment of the TUI groups is positively impacted in terms of the
government initiative in building good technologies at the workplace that not only makes the
working easier but are also able to create the best outcomes after the pandemic. Thus, this
recovery plan has allowed most of the tourism business to grow in the most unexpected manner
in short period
The micro environment factors majorly affects the working of the business if they are not
monitored on the regular manner. Moreover, some micro factors like the customer, suppliers,
public, competitors need to be analysed closely by TUI group especially after the pandemic so

that the working of the employees than might be conducted smoothly. Furthermore, during the
time of COVID 19 it had heavily impacted the target customer groups of the TUI groups as most
of the people were least interested in travelling (Kalogiannidis, 2020). Also, the company was
unable to introduce new and innovative ways in the working of the business and hence the firm
was finding difficulties in retaining both the employees and the target customers towards the
business. Moreover, due to the COVID 19 market research of the company was also very limited
and thus it was unable to find out what other competitors within the industry are doing to
overcome such complex issues within the workplace. Also, the TUI was more concerned towards
finding ways to improve the current business situations through devising the best solutions so
that negative impact of the various micro factors might be minimized.
Section 4
The company is also affected by list of various macro factors that need to be monitored
so that loses might be minimized. Furthermore, this might be done through applying the
STEEPLE analysis for TUI groups that is as follows:
Political: There are various factors such as political stability, government attitude and much
more than need to be analysed by the TUI groups so that working is not impacted in negative
way. Moreover, if group is planning for providing services in countries where there is lot of
political instability than it would only reduces the revenues for the firm.
Economic: Factors such as economic growth, unemployment, inflations rate, import export
restrictions and much more also affect the tourism sector on the large scale. Also, for TUI group
that if inflation rate is higher in any country than it would mean that giving more travelling
options would mean losses to the firm and decrease in the overall revenues (How STEEP and
STEEPLE Analysis Help in Business, 2022). Moreover, higher unemployment rate within the
country would affect positively as it would allow the group to hire employees at lower wage
rates.
Social: Certain lifestyle and fashion changes within the country also affects the tourism sector.
Hence, finding the choices of the customers will allow the tourism sector to grow in the most
efficient manner and introduce various offers to promote the business.
Technological: With the continuous changes in the tourism industry it is required to have the
latest and updated technologies so that business is able to survive in long run. Moreover, for the

cited company this will help in faster operation's and also it will able to collect the data in timely
and most efficient manner.
Legal: Factors such as tax policies, employment laws, health and safety laws need to be followed
strictly by the TUI groups so that there is no negative effects on the operations. Also, it would
help in building best brand image in the market.
Environmental: Nowadays people are more concern towards protecting the environment by any
means so that more sustainability might be promoted within the country. Furthermore, for the
TUI group it can be said that best environmental practices will help the business to grow in
against of some competitors (Prayag, 2020)
Ethical: It refers to range of social values that changes the business behaviour of any
organization. Also, the business ethical values remain same over period and hence based on that
customers are attracted towards the business in long run
Recommendations
 It is recommanded to TUI group that it would be able to reduce the negative impact of
the micro and macro environmental factors and gain maximum benefits from the
recovery plan through conducting the detailed market analysis so that more customer
preferences and choices are known (Kumar, 2020). Moreover, through funds that are
made available under recovery plan would allow the company to identify the most visited
destination and the choices of the stay so accordingly certain schemes than might be
thought by the company to introduce within the business after the pandemic to attract
more number of customers and maintain competitive advantage in long run
CONCLUSION
From the above project it can be concluded that TUI has been successful over the years
because of the constant hard work and best policies that had been devised for the growth. Also,
the report had identified the impact of the pandemic on the working of the business and had also
specified benefits of the government recovery plan to build up tourism sector. Moreover, the
impact of the recovery plan on the micro environment of the TUI business had also been covered
under this study. Lastly, impact of STEEPLE factors on TUI daily routine work had also been
analysed along with that report had also provided certain suggestion for the future improvement
of the company in against its competitors.

REFERENCES
Books and Journals
Al-Fadly, A., 2020. Impact of COVID-19 on SMEs and employment. Entrepreneurship and
sustainability issues. 8(2). p.629.
Ashrafi, A. and et.al., 2019. The role of business analytics capabilities in bolstering firms’ agility
and performance. International Journal of Information Management. 47. pp.1-15.
Brammer, S. and et.al., 2020. COVID-19, societalization, and the future of business in
society. Academy of Management Perspectives. 34(4). pp.493-507.
Jena, R. K., 2020. Measuring the impact of business management Student's attitude towards
entrepreneurship education on entrepreneurial intention: A case study. Computers in
Human Behavior. 107. p.106275.
Kalogiannidis, S., 2020. Covid impact on small business. International Journal of Social Science
and Economics Invention. 6(12). p.387.
Kumar, V., 2020. Indian tourism industry and COVID-19: present scenario. Journal of Tourism
and Hospitality Education. 10. pp.179-185.
Latan, H. and et.al., 2018. Effects of environmental strategy, environmental uncertainty and top
management's commitment on corporate environmental performance: The role of
environmental management accounting. Journal of cleaner production. 180. pp.297-
306.
Prayag, G., 2020. Time for reset? COVID-19 and tourism resilience. Tourism Review
International. 24(2-3). pp.179-184.65
Online
How STEEP and STEEPLE Analysis Help in Business. 2022. [Online]. Available
through:<https://pestleanalysis.com/steep-and-steeple-analysis/>.