Business Environment Report: TUI Plc, Innovation, and CSR Analysis

This report provides a comprehensive analysis of the business environment of TUI Plc, a leading tourism group. It delves into the different types of innovation and technology employed by TUI Plc and their impact on the company's operations, sales, and profits, as well as the broader economic progress. The report highlights specific examples, such as the use of robots, virtual reality, and artificial intelligence, to enhance customer experiences and streamline business processes. Furthermore, the report evaluates the importance of corporate social responsibility (CSR) for TUI Plc, defining corporate governance and CSR, and providing a brief history of corporate governance in the UK. It applies Archie Carroll’s Pyramid model of CSR to demonstrate the understanding of the four key responsibilities. The report concludes by summarizing the key findings and emphasizing the significance of technology and CSR in driving business growth and sustainability within the tourism industry.

Business Environment

Table of Contents
INTRODUCTION..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Demonstrate an understanding of different types of innovation and technology and how they
have impacted the economic progress of the country, using the example of TUI plc................1
TASK 2……………………………………………………………………………………………4
Discuss the importance of Corporate social responsibility for the company...................................4
CONCLUSION................................................................................................................................7
Refrences…………………………………………………………………………………………..8
Books and jounals…………………………………………………………………………………8

INTRODUCTION
Business environment is a term which defines the environment of the business where the
business performs the several operations and functions(Zaman, 2018). Business environment
consist of the customers, government, stakeholders, supply and demand all these factors have a
great influence on the decision making of the business and also in creating the ethical and
innovative business environment. The present report is on the business environment of the "TUI
Plc" world's leading tourism group. The company is the German multinational travel and tourism
company headquartered in the Hanover, Germany which comes under the hospitality and tourism
industry. The company has 1600 travel agency, tour operators, leading online portals, 5 airlines
with around 150 aircrafts over 400 hotels 15 cruise liners and many other agencies in all holiday
destinations around the globe. The report outlines the different types of innovations and
technologies and their impact on the economic progress of the country as well as of the TUI Plc.
The report also describes how the innovation and technology is impacting the operation, sales
and the profits of the TUI Plc. Further in the report importance of corporate social responsibility
within the organisation for which Archie Carroll’s Pyramid model of CSR is been applied to
demonstrate the understanding of the four key responsibilities.
MAIN BODY
TASK 1
Demonstrate an understanding of different types of innovation and technology and how they
have impacted the economic progress of the country, using the example of TUI plc
Innovation and technology
For the growth and development of the business environment it is very necessary for the
organisation to adopt the concept of innovation in their organisation (Chan, Berger and Man,
2020). In the business environment innovation is termed as the development of new product or
service in order to improve the existing product or service by implementing the innovative ideas
into practical representation. The main reason behind the innovation is the development of
technology. It is stated that innovation is highly dependent on the technology and also
technology is driving force behind the new innovation. Hence, Innovation and the use of latest
technology within the organisation not only provide the company with higher profitability and
productivity but also helps the organisation in gaining competitive advantage in the market.
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Contribution of innovation and technology of TUI Plc to the economic growth of the country
Innovation and technology these two things are valuable for the development of the country.
Innovation helps to bring new changes in the market which are being demanded and the
technology helps the companies to do their marketing and also promote innovation with the help
of upcoming new technologies(Tseng, Yi and Yeh, 2019). Innovation helps to bring higher
productivity in the market which brings benefits to the consumers. Tourism industry is not just
the business but it is also a source of revenue for the governments and the tourism plays
important role in the economic growth of the country. TUI plc have offered variety of services to
its customers fully integrated tourism business with innovative and unique holiday experiences
and the bookings. TUI plc have always to be attractive in offering the services with dynamic
packages and with some new offers. The company have used the innovative feature of providing
its customers a smart wristband which gives them amazing and inconvenient trip experience. As
more and more users do their booking form TUI plc it increases the revenue of the company. Not
just the revenue of the company but it increases the growth of the country as many people of
other countries come to travel because of the new and innovative features making investment in
the country which helps in rise of GDP which ultimately result in economic growth.
Explain how TUI plc use new technologies in their business
Technology and innovations are the two areas which helps the company to achieve future
growth and attain competitive position in the market. TUI plc operates its business in many areas
from Hotels and resorts, to cruise, musement, airlines and many more(Schaltegger, Hörisc and
Freeman,2019). Theses all areas of business requires new and updated technology otherwise they
would not be easy to operate by the owners and they also know that innovation and updated
technology has to be brought. In the cruise the company have brought the DJ robot which is
unique technology use and this robot do all the work like the person. It moves with the music and
respond with the music and changes the music according to the requirements of individuals. In
their hotels also the company have brought various technological improvements by using smart
reserved parking which allows the guest of hotel to reserve their parking space prior to coming to
hotel so that they can have the space. Hotels room are accessible with their mobile phones and
not just with any keys or smart cards. The smart feature can be used by the guests when they
arrive the hotel which helps them to remain flexible as earlier when the keys were lost they have
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to do lot of formalities. Developing such new feature helped the company to remain at the top in
the tourism and hospitality industry.
Give practical examples of how innovation and technology have impacted the operations, sales
and profits of TUI plc
Overview of TUI plc-
TUI is the largest and biggest tourism group worldwide which includes different areas of
operations which are tour operators, hotels, airlines, travel agencies and etc (Cravo and
Piza,2019). These all things exist in major destinations for holidays around the world. Their
cruise offer the people to spend holidays in the open waves and have five airlines in which
around 13 million people have travelled. TUI plc provide good consumer services offering them
quality in their services from booking the flights, to booking holiday packages to the consumers.
The most important characteristic with the corporate culture of the company is their universal
responsibility of environmental, economic and social sustainability.
Assess the new technologies and explain how they are being used by the company
TUI plc uses new and updated technology which attracts the consumers and helps in gaining the
revenue to the company. New technologies which are used by the company is explained below-
 Robots- The company uses the robotics in conducting various functions. They have used
the robot in their all cruises for the DJ and music (Boojihawon and Ngoasong, 2018).
This means they have the DJ robot who works similar to that of any DJ person and also
operates on music. TUI plc also operates more than 400 hotels and in every hotel there is
a robot who welcomes the guest which arrives in the hotel.
 Virtual reality- Virtual reality have become important for many areas of business and
specially the tourism business. The system helps TUI plc to develop the visual
advertisements about their hotels which they will providing to their guests, the facilities,
services and other things. Not just this, the company uses this facility for their business
also providing information of what they offer to the consumers and the packages which
they offer for holidays.
 Artificial performance- In the tourism business this new technology is very effective
and essential. TUI plc uses this feature for providing customer services developing
chatbots in which they can write about the difficulties or any queries which they face.
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This facility can also help the company to sort their data so that they would be able make
conclusion about their business performance.
Compare the sales and profits of TUI plc before and after the new technologies were introduced
TUI plc functions in hotels, cruise, management contracts, leasing with largest tour and
travels in the market worldwide. It is an obvious fact that it was not easy for the company owners
to achieve such achievement in the shorter time and without using any technology and
innovations in their business activities (Le, Ling and Yau, 2018). The company uses fully owned
digitalised risk management system to boost results and occupancy. TUI plc have made various
new changes in the technology and the innovations which provides them more bookings from the
consumers. Now the company have become the fast growing tourism business of approx $170
billion. TUI plc have raised the sales from 10.2 billion in 2004 which has reached to approx 19.5
billion. The company earn good amount of profit which makes them the largest tourism business
worldwide. The profit of the company have reached to 18.9 billion Euros as compared to the
11.9 million. The major part of such a big growth is because of the new technologies which the
company have brought up.
Comment on the findings
From the above information it can be said that technology is very important for any
business growth specially the tourism business. Technology has changed the working pattern and
the operations of conducting any activity in the business. Employees working their needs
technology so that they would be able to work effectively and in a simplified manner. Consumers
also attracts to those businesses who offers them new services with new technology and
innovation. This has helped the business to increase their revenue and become the top most in
their business.
TASK 2
Discuss the importance of Corporate social responsibility for the company
Define Corporate governance and Corporate Social Responsibility (CSR)
Corporate social responsibility means the practices which are conducted by the
businesses in order to sustain the rules of sustainable development and to include in their rules
the concerns for environment and society which will act as useful for the society(Rocha,
Fernandes Narcizo and Gianotti, 2019). On the other hand, Corporate governance means how the
corporation is administered. It means the practices, rules, processes which are basically governed
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by the companies stakeholders to carry the business. Basic aim of the corporate governance is to
ease the entrepreneur and provide effective management which helps in achieving the success of
the company. TUI plc follows its own CSR and the corporate governance which helps them to
carry their objectives without harming the environment and having communication between
different parties of the company.
Brief history of corporate governance in UK with examples
Governance word was not used in the earlier times but now it is used frequently in the
business (Loon, Otaye‐Ebede and Stewart, 2020). It was started in 1990 of Cadbury report on
financial exposure of corporate governance with code of best practice. The standards and the
rules which was adopted by the company was then used by City and Stock exchange. In 1995,
there were some more principles of remuneration which was added by the Greenbury report. In
1998, the first combined code came up which was produced by Turnbull report which focussed
on internal controls and risk management. In every case the reports were looked by shareholders
and which identified some shortcomings of theses codes. In 2002, the corporate governance was
again looked up by Derek Higgs which come up in 2003 which was challenged by the leading
companies that report contains some burden which is unrealistic. Consultation went on by Sir
Robert smith who looked upon the role of audit c committees and his new solutions or
recommendations were added in the code. The 2003 code was modified with small changes and
in June 2006, there were new versions of the rules and policies of the financial statements.
The best example of the corporate governance would be of Weir group which is a IT firm and a
good engineering company of UK where women’s were given the major authority to conduct the
business where- 27% of the board members of the company were the women and 29% from the
executives were also women.
Importance of CSR for organisations with particular emphasis on TUI plc
The importance of Corporate social responsibility in terms of TUI plc is explained below-
 Improved public image- Most important aspect which the business focus is on satisfying
their consumers and to build god image in their mind about the company (Antonescu,
2018). TUI plc has always provided best services in tourism or holiday packages. Not just
this, the company have also focussed on those areas which they serve which are in hotels,
cruise, travel agency etc. Consumers are satisfied with the business because of the quality
services which they offer.
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 Increased brand awareness and recognition- When the company offers good business
services and quality in it then the brand image is automatically created. Because when
companies work in accordance with the ethics and principles of the society then it
spreads automatically. TUI plc have created good image about their business following
all the policies and principles which are required for the society.
 Increased customer engagement- When companies follow the rules and principles it
helped in continue engagement of consumers (Peršič, Markič and Peršič, 2018). TUI plc
have done various advertisement programs which helped the consumers to get more
information about the company. Consumers are engaged in the company services and is
providing the mouth marketing to other people.
Explanations of Archie Carroll is Pyramid of CSR and apply it with the company
This model was developed by Archie Carroll who says that corporate has to attain some
responsibility in four areas which are explained below in context with TUI plc- Economic responsibility- The first level of the pyramid is to be profitable as without
earning profits the company won’t be able to run its business. TUI plc in the beginning
time was not able to earn enough profit as the earning was equal to the cost. After
expanding the business and using technology and innovation helped the company to
attain enough profits.
 Legal responsibility- The second pyramid is about the business to obey the laws which
the government frames. The laws are related to the employment law, tax law and other
health and safety issues to be present in the business (Sospeter and Nchimbi, 2018). TUI
plc have the separate department of law who checks whether the company is following
the legal rules and regulations. The company have never been in news about not
following any legal rules. Ethical responsibility- The third pyramid explains to follow the right principles and
always do good in situations which come to the business. Ethically TUI plc have always
been in ethics focussing on the qualitative consumer services and not harming the
environment and working according to the societal needs.
 Philanthropic responsibility- The last and at the top of the pyramid is this which says
that the companies uses resources from the nature and pollutes the environment in one or
the other thing. For this, they should pay back the society whatever they have taken from
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the environment (Chang, Wong and Chiu, 2019). TUI plc have always given the
community better services and offers in which they get the benefit and always works in
public interest and needs.
CONCLUSION
It is concluded from the above report that in order to sustain in the competitive market place like
UK it is very important for the organisations to constantly bring innovation into their products
and services and use the latest technologies in the business operations. It is also analysed from
the above report that use of latest technologies and the innovation and organisation are the key
factors behind the profitability and high sales which also contribute to the economy of country.
The good brand reputation and long term sustainability in the business is achieved with the
implementation of the corporate social responsibility within an organisation which also helps the
organisation in retaining their customers and employees. There are the various CSR models
among which Archie Carroll’s Pyramid is one of the most popular model to demonstrate the
economic, legal, ethical and philanthropic responsibility of an organisation towards the
employees and the economy of country.
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References:
Books and Journals
Antonescu, D., 2018. Are business leaders prepared to handle the upcoming revolution in
business artificial intelligence?. Quality-access to Success. 19(166).
Boojihawon, D.K. and Ngoasong, Z.M., 2018. Emerging digital business models in developing
economies: The case of Cameroon. Strategic Change. 27(2). pp.129-137.
Chan, D., Berger, R. and Man, T.W.Y., 2020. The impact of managerial characteristics on
business strategies under the environmental change: an investigation of the Israeli
diamond industry. Journal of Small Business & Entrepreneurship. 32(2). pp.123-148.
Chang, H.H., Wong, K.H. and Chiu, W.S., 2019. The effects of business systems leveraging on
supply chain performance: Process innovation and uncertainty as
moderators. Information & Management. 56(6). p.103140.
Cravo, T.A. and Piza, C., 2019. The impact of business-support services on firm performance: A
meta-analysis. Small Business Economics. 53(3). pp.753-770.
Le, Q., Ling, T. and Yau, J., 2018. Do international cocurricular activities have an impact on
cultivating a global mindset in business school students?. Journal of Teaching in
International Business. 29(1). pp.62-75.
Loon, M., Otaye‐Ebede, L. and Stewart, J., 2020. Thriving in the new normal: The HR
microfoundations of capabilities for business model innovation. An integrated literature
review. Journal of Management Studies. 57(3). pp.698-726.
Peršič, A., Markič, M. and Peršič, M., 2018. The impact of socially responsible management
standards on the business success of an organisation. Total Quality Management &
Business Excellence. 29(1-2). pp.225-237.
Rocha, C., Fernandes Narcizo, C. and Gianotti, E., 2019. Internet of management artifacts:
Internet of Things architecture for business model renewal. International Journal of
Innovation and Technology Management. 16(08). p.1950062.
Schaltegger, S., Hörisch, J. and Freeman, R.E., 2019. Business cases for sustainability: A
stakeholder theory perspective. Organization & Environment. 32(3). pp.191-212.
Sospeter, N.G. and Nchimbi, M.I., 2018. Insights on Impact of Business Development Services
on Growth of Women Owned Enterprises in Tanzania. Journal of Management and
Strategy. 9(1). pp.82-93.
Tseng, H., Yi, X. and Yeh, H.T., 2019. Learning-related soft skills among online business
students in higher education: Grade level and managerial role differences in self-
regulation, motivation, and social skill. Computers in Human Behavior. 95. pp.179-186.
Zaman, K., 2018. The impact of hydro-biofuel-wind energy consumption on environmental cost
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estimator. Environmental Science and Pollution Research. 25(5). pp.4479-4490.
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