External Environment and CSR: TUI Group in Business and Management

This report examines contemporary developments in business and management, focusing on the TUI Group. Task 1 analyzes the external influences on the organization, including the impact of Brexit, globalization, and cultural adaptation. It delves into TUI's operations, revenue, and mission, followed by a detailed PESTLE analysis of political, economic, social, technological, legal, and environmental factors affecting the tourism industry. Task 2 explores the relevance of ethics and corporate social responsibility (CSR) to Standard Chartered Bank, including their impact on policies and decision-making processes, and the effectiveness of organizational responses, with areas for improvement. The report highlights the importance of understanding the business environment for strategic decision-making and sustainable growth.

Contemporary
development in business
and management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
External influences of organisations and its impact...............................................................1
TASK 2............................................................................................................................................6
Relevance of ethics and CSR to Standard chartered bank and their impact on policies and
decision making process.........................................................................................................6
Effectiveness of organisational response................................................................................7
Areas of improvement as a response......................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
The term business environment plays a vital role in growth and success a business
associations; it hinders working activities and operations of the firm in direct and indirect
manner. In addition this, business environment is an intermixture of internal and external factors
which can reflect market position of the firm; in which internal factors encompasses with
employees, demand, supply, cultural, policies which are implemented by management. Apart
from this external factors involves political, economic, social, technological and so on.
Therefore, it is necessary for managers to understand all these elements thus to make imperative
business decisions in an appropriate manner (Abuznaid, 2017). For this, firms can develop
several policies and strategies in order to gain high competitive edge at marketplace. The present
coursework is based upon contemporary developments in business and management; it is
enlightened importance of corporate social responsibilities for a business association.
Additionally, there will be discussion on diverse the impact of external environment on business
activities or tasks. While considering the area of discussion, TUI is the referred organisations
because it operates at global level. The group owns has six airlines, nine tour operators and
having largest tour operator fleet in Europe.
TASK 1
External influences of organisations and its impact
Implications of Brexit in service sector of UK remain unclear. After Brexit many national
or international businesses which have headquartered in EU, from where they sell to their
customers are facing the fear of losing ability of deal across, in this manner they are building
existing bases and opening new subsidiaries so as to perform effectively. Apart from this,
globalisation affects organisations which are trying to enter into emerging markets. It permits
organisations and individuals to deal effectively with all countries. It is overviewed that, TUI
group is focusing on joint ventures and strategic alliances in order to sustain high competitive
vying from international market (Banerjee, 2012). When the firm entered into new markets it
takes certain time to understand or adapt the local cultural of UK. When TUI merged with First
choice in 2007 it has invested 20% of its profits into recognising social cultural of Ireland. Along
with this, the firm also works with local people of UK for increasing cultural knowledge and
interest of local communities; it supports business to get suggestions how to run a business an
persuasive manner. It results, improving ability to accept changes and compete with external
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environment. TUI groups always remain to be proactive thus to exceed customers' desires. For
this purpose, the travelling agency is always come up with new and innovative ideas. TUI is a
group of opportunities as it relies upon experience and continuity. Basically, the firm operates in
three main sectors, such as – mainstream, accommodation & destinations and Specialists &
activity. In addition to this, it is having over 1800 retail travel shops, 138 aircraft and 6 airlines.
The annual revenue of the organisation is €18,535 million whereas its current operating income
is €1,079.7 million. In TUI group, approx 70000+ employees are currently working and it owns
has 300 hotels and resorts.
The mission statement of the firm is to driven up leverage of economies of scale and
scale while generating optimal platform from which to help current operations and future growth.
On the other hand, the vision statement of TUI Group is to become market leader in global
hospitality industry by providing effective leisure services to people (Barker and et. al., 2011).
Therefore it has been clarified that external business environment has a critical influence
on growth and diversity of business associations. For instance- alterations in political condition
of the nation hinders spending abilities of customers. When UK decided to leave EU, it needs to
make new laws, regulations and policies which may be or may not be beneficial for corporate
associations. In order to retain its success, TUI group follows all government legislations or
laws. For accomplishing its goals and objectives, business entities need to victimized the market
trends and customers' requirements. It conducts an external environment analysis by using
several strategies and policies thus to deliver value added services tourism services to people and
increase high profit margins. TUI group also tends towards acquisition of small firms for
enhancing its market areas. But the main drawback of the company to have less experience of
small areas cause it only deals in international markets. This prospect highly affect goal business
operations and practices (Bean, 2012). There could of major threat of raising market competition
where various substitutes of similar products are easily founded.
Henceforth, it is fundamental for TUI group is to focus on reducing the impact of these
barriers thus to survive freely in global markets. In this sense, firm should create a PESTLE
analysis as an impulsive term of assessing external factors: -
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Illustration 1: External factors of business environment
(Source: An Evaluation of a PESTEL Analysis, 2018)
External environment analysis of TUI Group -
Political factors – These elements have a moderate impact on public presentation and
growth of tourism sector in direct and indirect manner. Basically, political factors are associated
with decisions which are made by government. It comprises with government policy,, political
stability or instability of a nation, tax policy, foreign trade policy, environmental law, labour law,
trade restriction etc. therefore, business entities are required to respond towards current and
evaluate future legislations then adjust its marketing strategies accordingly (Crane and Matten,
2016).
Importance – In UK, political environment allows new entrants and foreign investments
which increase market competition. Taxation policies upon tourism industry also has a wide
impact on TUI. Government of the nation often render tax exemptions and subsidies thus to
promote tourism in UK. Along with this, British political market is seemed as less government
control and intercession thus due to political stability in nation gives chances to venture
capitalists. TUI has an impassive strategy which supports to the actively performed and grow in
constitute political situations as well as beat its external rivals. Apart from this, due to adverse
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political conductions, like terrorists attacks force government to implement strict security as well
as immigration laws. Hence, tourism industry suffers when prolonged terrorism attacks.
Examples Impact
War Harm corporate and legal properties.
Strict laws and legislations for foreign firms Eliminates sales and profitability.
Riots, corruption and violence Hurdle in supplying qualitative services to
buyers.
Economic factors – A proper economic analysis of tourism sector emphasised on
changes in income, sales, employment and other aspects in a region. The most direct tourism
influences occurs within primary tourism sectors lodging, restaurants, amusement and retail
trade. Along with this, economic factors also involves exchange rates, inflation rates, exchange
rates, currency rates etc. For instance – due to poor economic condition issues like – poverty and
unemployment will be raised (Freeman and Hasnaoui, 2011).
Importance – Economic factors put a huge impact on disposable income as well as
bargaining power of customers as it can become one of the biggest threat for TUI group. Due to
globalisation, enhancement of low cost airlines could lead a major economic risk for all business
entities. Apart from this, GDP rate of travel and tourism economy was slowed down by 1% in
2010, continued by 6% in 2015 and expected to raised by 0.6% in 2010. Therefore, it is essential
for business organisations to recognise economic environment of the country thus to gain high
competitive edge over the world.
Social factors – In this modern era, changes in lifestyle of customers has also changed
their demands, now they are demanding new and innovative products which also involves
monetary value (Crane, Matten and Spence, 2013). For example - Brand consciousness is one of
the major social cultural factor which signifies that now buyers started believing in brand image
of the company; brand loyalty can be seen through past experience and market goodwill of the
firm.
Importance - TUI is a oversees tourism provider over the globe, it always come up new
ideas of travelling that helps in raising customers' interest towards the brand and its offerings.
There are some major social factors, like - Emphasis on safety, Health consciousness and age
distribution, higher life expectancy and changes in lifestyle. If all these elements are considered
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then firms will easily accomplish their goals and objectives in the best possible manner. On the
other side, tourism encompasses with movement of various locations thus situation of cultural
clashes can be arise; it might be convert in conflicts and disputes among people. Henceforth,
tourism has led to commercialisation of local cultural as well as standardisation of new
destinations.
Technological factors – In this modern era, innovations in technology hinders the entire
operations of the company in respect of improving their efficiency and productivity (Gitsham,
2012). Technological factors can be favourable or unfavourable for the firm; it also comprises
with developments, automations and technological awareness which are possessed at
marketplace.
Importance – Acquisition of digital technology has given a boost to travelling industry
in respect of facilitating operations' administrations and reservations. Due to advent of web and
internet, tour operators are also enhance their working processes and provide adequate
information to customers about new offerings. Recently, TUI launched virtual tour operated
named TOUROPA.COM here it sells through travel agents. Therefore, technological
advancement has provided significant growth to TUI as its sales turnover reached at $2.6 billion.
Legal factors – Government of every nation implies certain laws and legislations in order
to maintain legality of the nation. British government implement diverse laws for managing and
controlling tourism activities; thus it is necessary for TUI group to fulfil all these laws and
legislations in the best possible manner (Groves and LaRocca, 2011). Legal laws involve health
and safety standards, labour laws, consumer laws, minimum wages act and so on. TUI group has
created Aviation safety and Regulations which captures domestic, health, environmental,
customers' issues and permit firms to gain high profitability.
Importance – It is fundamental for TUI group to be aware with legal issues of countries
in which it performs. Trade laws is a vital part in present business scenario; the law entails that
business organisations should consider trade policy of UK and any other country thus to perform
legal and ethical manner across the world. Issues regarding spawning, online trademark
protection, mouse-trapping spoofing, cyber-squatting, domain name fraud, as well as spyware
are also affects business activities and processes in direct and indirect manner.
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Environmental factors - In order to attain its market sustainability, TUI is focusing on
improving environmental performance. For example – UK government is campaigning for
greener holiday locations then it helps in promoting eco friendly services of the company.
Importance – There are different environmental issues, like – Carbon, climate change,
health and safety of public etc. thus to perform effectively and in proper manner (Hopkins,
2012). TUI follows ISI 14001 environmental standards which protects environment in respect of
species protection, landscape protection and nature protection. The main area of concern of the
company is adequate use of energy and resources and climate protection.
TASK 2
Ethics and Corporate social responsibility
Relevance of ethics and CSR to Standard chartered bank and their impact on policies and
decision making process
Ethics and values are created in a specific region or society for individuals as they behave
properly. Ethics identifies certain questions regrading morality, like concepts between right or
wrong, good or bad and virtue or vice. Basically, these are not relies upon what is acceptable by
society. Therefore, in context of organisations, ethics is a proper assessment of business practices
and policies which are linked with future controversial issues, like – corporate governance,
discrimination, corporate social responsibility and so on (Hopkins, 2012). Law often directs
business ethics and it provides a framework through which business organisations can select
what to follow in order to get public acceptance. By considering TUI which provide tourism
services, it is ethical responsibility of marketing department to provide correct information to
customers and sell only those products or services which fulfils all terms and conditions of
government laws.
Apart from this, Corporate social responsibility is a managerial concept through which
firms get integrated with social and environmental aspects and accomplish their business
operations by interacting with stakeholders. Generally, CSR is a way of attaining economic
balance and social imperatives by assessing expectations of stakeholders. Therefore it is essential
for business associations to focus on fulfilling their social responsibilities thus to maintain the
interest of local communities within the associations. In tourism sector, customers' faith and trust
is very important to follow all business ethics to attain its goals and objectives (Huimin and
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Ryan, 2011). Beside this, corporate social responsibilities also help in arriving vast range of
customers in a short span of time. Following is defined areas covered in relevance of ethics: - Transparency – It is one of the most vital element of ethics cause whenever people
thinks company is hiding something from their, i.e. working processes, exact location etc.
it can reduce buyers' trust. Thus, transparency is must for TUI as it should always be
open with target audiences. Whereas it is quite difficult for the organisation to acquire
maximum level of clearness. In this relation, administration needs to take necessary
decisions to maintain transparency of its operations. Promotion of fair trade practice – Due to its worldwide presence, TUI deals with several
people in which some of them are demanding of unethical activities, i.e. gambling.
Organisational trade of TUI concerns with social and environmental well being of the
nation and maximise customer satisfaction level. Relevancy in fair trade policies is
assistive for company to cope all issues or barriers (Ihlen, Bartlett and May, 2011). For
this, the business should keep an ethical code which will put positive hindrance on
working activities of the company.
Relevance of CSR on banking industry and its impact is stated as under: - Promote education in rural areas – TUI group is operating at global level and gaining
high revenues in billions. In accomplishment of its CSR activities, the firm is tend
towards promoting education at primary and secondary levels. Apart from this, women
empowerment is also a significant part of social responsibilities which must be promoted
the firm.
 Fresh water supply – Another social responsibility of TUI group is to safe environment
and natural resources; in this manner it is focusing on fresh water supply; the main reason
behind this due to lack of water people as well as societies will be troubled in future (Jo
and Harjoto, M. 2012). Saving water is one of the major topic of concern for TUI group
in completion of CSR activities.
Effectiveness of organisational response
TUI group is facing several allegations in respect of procuring of deceptive or unethical
practices. In specific cases, they were involved in dealing with such issues successfully yet
whereas in some cases the tour provider was fizzled. For instance in 2009 the firm was involved
in employee exploitation and child labour but did not admit upon the same. Toward the end, it
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needed to pay $2 billion. Then again, it was additionally established in tax evasion cases in some
nations. In past decades market position of TUI group was also not so good whereas while
economic recession it has fired 25000 employees without giving them prior notice. As per the
thoughts of various business the firm could react in better way, i.e. selling shares to other
investors.
CSR exercises: -
Keeping in mind the end goal to satisfy its CSR activities business associations needs to
set certain objectives towards market condition. TUI group has committed towards
environmental protection and less use of fuel buy yet they can't done any accomplishments in
this section. It speaks that, the firm isn't worry towards its social duties and can't reacting
towards external market situations (Kim and Park, 2011). After implementing CSR it is
overviewed that strength and opportunities will be increases and weakness and threats will be
reduced, Henceforth, SWOT examination will be available to TUI to react rapidly and in a
powerful way: -
SWOT ANALYSIS OF TUI
Strengths Weakness
 Company has a fleet aircraft as well as
charter flights flying to nearby 150
destination globally and more.
 Mainly the services of holiday
packages are sole to directly to the
people oneself.
 France and UK are the fastest and
biggest emerging markets in context of
TUI.
 Customisable and unique holidays are
accessible at the organisation.
 Strong position of leadership in the
long-haul travel.
 Approximate 50,000 worker are with
 Intense market competition from the
rival organisation are referring to the
limited loyalty of brand among
consumer.
 Being an international brand of tourism,
company has to cope with with social
and cultural issues in regard of
managing their offices.
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the organisation.
 More than 30 million consumer
internationally present their dominance
in the working industry.
 Benefits has emerged at significant
level.
Opportunities Threats
 TUI is developing their applications for
reservation facilities and booking their
holidays efficiently and conveniently.
 Emerging markets are the new
opportunities to deliver their services to
start their operations in foreign markets
for TUI which can be tapped by
company.
 Company through using digital
platform, access the untouched markets
and can develop their business
virtually.
 Costing strategies of environment are
more challenging for TUI to the
competitive marketplace which can
assist in achieving their business
objectives significantly.
 There are numerous risks which are
being faced by TUI such as Foreign
exchange hazards, interest risk,
economical policies and political terms
of nations etc.
Areas of improvement as a response
There are different areas of improvements in which organization need to concentrate
consistently thus to fulfil social responsibilities. Show recognition of efforts- This is a critical aspect of any business which includes
empowering the esteemed part of association. Henceforth if involvement of staff
members isn't up to the check, may generate major issues regrading turnover in the
organization. Therefore, this elements must be emphasised effectively (Lantolf, Thorne
and Poehner, 2015). Strong Team Structure- Each organization is contains team which includes several
people who perform work to accomplish a definitive objectives. Consequently, if the
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individuals are not legitimately organized this may prompt serious issues regrading
annual turnover of the firm. So that it is necessary to develop an adequate team structure. Technology- It is the most vital part of improvement that also have to be improved by
TUI group as it is linked about the fulfilment of its clients. Particular spotlight ought to
be refereed to on Research and development department of each industry as it is viewed
to build market reputation of the company among customers. Female Employees – There should be eliminated discrimination between male and
female employees thus to depict the world that the organization is free from the assorted
variety issues (Lawless and Findlay, 2015). Henceforth it is the obligation of TUI group
to recruit more ladies to expel the sexual orientation disparity. Sustainable Environment- Each association should focus on safety and security of
environment as their moral obligation. They should focus on developing pollution free
society and making green structures. For example - consumption of natural resources and
solar engery transportation motivate to develop clean and green environment. Ethical ground- TUI group is required to roll out improvements in their moral principles
by sorting out normal classes for the managers with respect to the advantages of the
company. Customer Relationship- It portrays the connection amongst organization with its target
audiences. Advancement of each association relies upon the connection they keep up
with their imminent clients. This idea is especially essential to manage healthy and
positive relation with customers to travelling industry as they absolutely perform
activities for the clients. Support Services- The customer support framework ought to be all around familiar by
all employees and service provides of the firm otherwise this may prompt the
disturbances and un-satisfaction among customers; mind. So organization need to take a
look upon this issue. . Access to safe drinking water- TUI also cares its employees by supplying them
freshwater. It is also contributing in worldwide level by beginning the protection
campaigns and disclosing the information about how shortage of water can possess a
significant issue (MA, LIANG and GAO, 2011).
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 Focus on the task- Usually, it is the common habit of employees they combines personal
and professional life together in order to gain sympathy from others. In this manners,
businesses should focus on how to attaining career goals and objectives of individuals at
their best. Change Resistance- It is the behaviour of employees as they oppose towards change and
contradict or resist in accepting it as they don't want to move anywhere from their
comfort zone that might be affected output level and performance. To stay successful in
aggressive market scenario in which alterations cannot constant therefore it is necessary
to remain upgrade as per the time (Moura-Leite and Padgett, 2011). For this tourism
companies need to lead organise training and development programs with a specific end
goal to learn new patterns and systems. Solution to the problem- Each business confront situational issues or problems sooner or
later of time. henceforth it is extremely vital for the organization determines best possible
solution of problems (Huimin and Ryan, 2011). For this workers are expected to work
effectively and ready to face adverse situations.
 Innovation- In the zone of inviting and applying new ideas into the business, travelling
industries are required to step up with regards to thinking of inventive working processes.
So every association ought to give cradle to execution of these technical and innovative
tools at workplace.
CONCLUSION
From the above mentioned report, it has been summarised that external environment
plays a vital role in running business activities or operations; it also affects decision making
process of the company in direct and indirect manner. The present reprot help companies to
define that how they can accomplish their goals and objectives in an efficient manner. TUI group
is a leading tourism service provider and operates over the globe, thus it also affects from
external environment influences, such as – political, economic, social, technological, legal
environment. Apart from this, the report also defines significance of CSR activities for a business
organisation.
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Online
An Evaluation of a PESTEL Analysis, 2018. [Online]. Available through:
<https://www.kazmaier-translations.com/business-strategy/an-evaluation-of-a-pestel-
analysis/>.
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