Evaluating TUI Group's Business Environment: COVID-19 and UK Plan

This case study examines the impact of business environment dynamics on TUI Group, a major international tourism and hospitality organization. It discusses the effects of the COVID-19 pandemic and the UK government's recovery plan on TUI Group's internal and micro-environments. The analysis covers aspects such as crisis management, operational adjustments, and the influence of STEEPLE factors (Social, Technological, Economical, Environmental, Political, Legal, Ethical) on the company's operations. The report concludes that the UK government's recovery plans offer significant benefits for the tour and travel industry, aiding TUI Group's recovery and future sustainability.

Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
Section 1...........................................................................................................................................3
Brief overview of TUI Group.....................................................................................................3
Section 2...........................................................................................................................................4
The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.........................4
The impacts of the UK government’s recovery plan on TUI Group’s internal environment.....5
Section 3...........................................................................................................................................5
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment...........................5
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment........6
Section 4...........................................................................................................................................6
Impact of of STEEPLE factors on TUI Group’s operations.......................................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment dynamics has a significant impact on business. A dynamic
environment is rapidly changing business environment . In a dynamic market , company has to
quickly adapt new changes in environment to keep up with new trends and technology
(Nudurupati, Garengo and Bititci, 2021). In this case study business environment dynamics will be
discussed and its impact on TUI group company . An organisation's internal business internal
environment includes current employee, management and mainly corporate culture which
directly impacts the employee's behaviour. Altogether some elements impacts whole work
culture and some only manager .This is the environment which directly influences the regular
routine activities of business straight away. It is collection of the forces and factors that puts a
close impact in the performance of the company and day to day activities . There are some
components which are influenced by directly micro business environment suppliers, company,
competitors, general public, marketing intermediaries and the customers. Macro environment
means the major and uncontrollable factors influencing the planning and decision making of the
company . A company doesn't exist or operate alone in business environment it has many factors
that influence it and these factors help and at the same time makes difficult situation for
company. These factors includes demographic , economic , natural , technologies , political and
cultural environment .
Section 1
Brief overview of TUI Group
TUI group is a international company and it is a tourism and hospitality organisation that
offers services like tour , flights , cruise, and many more , this company is having more than 400
hotels and situated in top class holiday making regions, 150 aircraft and many more . Founded in
1923 in Berlin , Germany and in 1959 listed on stock exchange .
Last years revenue and net profits
In the year of 2018/19 company received revenue of 18.92 billion pounds and net profit of 531.9
billion pounds in the respective year . And in the year of 2019/20 company got revenue of 7.94
billion pounds and unfortunately received net loss of -3.13 billion pounds under Friedrich
joussen .

Number of employees in company are 50,584 .
Its industry is leisure and arts.
Top competitors are of TUI group
1) thomas cook India
2) transat
3) holiday break
4) sunwing
5) dart group
6) sea link travel group
Organisational structure
The organisational structure is a way that how some activities are in a direction to achieve the
goals of organisation . These activities can include roles , rules and responsibilities . This also
dictates the way of flowing communication in an organisation between different levels (Steyn,
2020). For instance TUI group follows centralised structure , in this the information flows from
top to down and in the company the information is shared by head office and distributed down
in a chain of command , businesses like this often can be slow but they have many benefits like
 consistency across the business
 the business has a clear direction
 operation and communication can easily being monitored as they have fixed chain
through communication flows (RECTOR, 2019).
And at the same time there is also some drawbacks of this structure like
 it can demotivate employee
 it may lower productivity
Section 2
The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.
In January 2020 group SHS crisis management started monitoring the situation of the
covid 19. The first call seen or addressed by management was on 22nd of January , after
continuously monitoring crisis the team for it created on 24th February . Group SHS connected
the crisis management across the business areas , they did over 75 meetings where the made
strategy against covid(Hörisch, and et.al., 2022.) , giving command to the countless operating

calls and coordinating the approach between the markets and more than2,01,000 customers sent
to their home from destinations .
With the start of covid 19 , the SHS group made teams and sent them across the group by
collaborating and occupational , mentioned hygiene measures , distance rules as well as other
covid 19 measures throughout the TUI group for all employee , work should be done keeping in
mind about the countries policies regarding covid and ensuring that all strict rules are getting
implemented. For instance in Germany there was special rules for employees coordinating but in
England the guild lines were different like they have simple understandable format . Group SHS
coordinated the close down of office and retail locations and promoted safe working procedures
and this was shared as best practises in business .
The impacts of the UK government’s recovery plan on TUI Group’s internal environment.
Rebuilding tourism is a priority but sector become more resilient and sustainable in future
(Song , and Zhou, 2020.). Tourism is one of the hardest hit industry by the covid 19 pandemic
and recovery plan on TUI group's internal environment but there is still many difficulties to face
and because of these policies companies like this running again with extra pace due to these
policies( loannides, and Gyimóthy, 2020.) . The crisis disturbed the labour market . This
pandemic has exposed social and economical inequalities globally and impacting workers with
low pay , these plans help them providing social protection
Section 3
Micro-environment:- micro-environment are factors with ability to impact operation of
a organisation and managements ability to achieve the goals of an institution.
The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment.
TUI group is a German leisure tour and travel company and it faced a great impact from,
it as there were a lot of travel restriction in many countries, flight suspensions, sacred customer
from travelling, Negative press about places and situation that are some basic issue that are faced
by a lot of businesses in this sector (Pokrývková and et. al., 2021).
TUI have been offering its customer a 20% bonus if they do not ask for refund and
rebook there holidays. It also announced that the booking in the summer holiday are down with
59% in comparison of the last year. This is all caused a great impact on TUI and all other
company in the same sector and the main two reason where travel restriction and low demand to

travel by the people. Organisation also faced a lot of impacts on economical sector as all the
booking were cancel and people have started to ask for refund.
The impacts of the UK government’s recovery plan on TUI Group’s micro-environment
Tourism recovery plans helps in better development of the sector after pandemic.
Government plans to develop domestic tourism to bring it back to pre pandemic level by 2022
and international level by 2023. Some of the recovery plans these include £10 million national
lottery days, this scheme will be launched in national lottery this autumn to give a boost in
travel beyond the spike of summer (Ramachandran, Behnassi and Tripathi, 2021). People now
have a chance to claim vouchers so that they can redeem that in any tourist place in UK.
A Rail pass is new offer given by the government to people so that they can travel all
around the country with ease and sustainability. This pass will be availability at Britrailpass and
will provide discounted entry at tourist attraction in UK. Now UK government will also focus
on Technology and Data Govt. is going to create hub where it will track all the data related to
tourism and and also will be able to track consumers travel trends and can understand what
consumer needs and can be served to him like water sports, hiking and provide a sustainable
tourism experience to it customer (Campagnolo and et. al., 2022).
Section 4
Impact of of STEEPLE factors on TUI Group’s operations
STEEPLE:- It can be defined as factor that help an organisation to determine that how a
product and service will fit in future scenarios. In context to TUI group's factor's of steeple are
discussed below :-
 Social factor -
Factor is a important part of this industry as it help an organisation to understand the
change in the taste of people towards brand or product. These factor also let you learn about the
chang3e in the life style of people and change in there needs and liking of brand (Ringland and
et. al., 2020).
 Technological factor-
Due to change in the practices and use of technology it has impacted both positively and
negatively to the organisation people are now shifting more to online rather then going to store
this is the reason which forced TUI to close over 100 store and remove 300 staff member and

this escalated due to pandemic and lock down people shifted to online services. Cause the
institution to close more store and 900 people to lose there jobs but company promise to relocate
600 jobs and this was a negative impact on the company. As there is increase in the technology
has show that TUI can provide the cheaper services with same quality service that is at the core
of business help in understanding new change in market.
 Economical factors -
The Recent recession has forced the organisation to close 100+ stores and this action of
TUI has put risk on more than 900 of its employees but the company has promised to relocate
600 of its employees and this action of the organisation has impacted towns economy where
there store where.
 Environment factor -
Due to increased in travel industry it also promotes to increase in the level of pollution
and carbon gas emission and this leads to global natural health depletion (Richter and et. al.,
2022). TUI is helping environment in many ways like heating water through solar panel on the
roof, the power is generated through biomass power plant and by not changing towel daily only
changing towel on the customers request.
 Political factor-
This factor play a vital role in determining TUI long term profitability in certain region
or market. TUI works as tour and travel industry in a lot of countries and come across with a lot
of different laws, political environment and political system risk. The only way to achieve risk
in such a dynamic tour & travel industry all over different countries is to diversify the
systematic risk political environment.
 Legal factor -
In some of the countries the legal frame work and institution are not booming and are not
even good enough to protect the intellectual property right of any institution. A organisation
should be care and evaluating before entering into markets like this as this could lead to theft of
organisations secret because of all the competition. But TUI is well protected because of the
strong legal power and experience.
 Ethical factor -

TUI is very determined towards there ethics as the company was trying to give and maintain
most of its employees jobs as they have to remove 900 people from the store they tried to
relocate as many as possible people and also give 600 jobs again (Kelly, 2018).
CONCLUSION
As per this report it has been concluded that there can be a lot of benefits from the new
plans that are been introduced by UK government as they all work for the improvement in the
tour and travel field or industry and help a lot to TUI company. As with the new policy of the
Govt. people will now start travelling and this will not only be helpful for the Govt. it will also
be helpful for the TUI company. Now the company will have more customer and more time to
recover there loss that they incurred in the past year due to covid 19 and as the company has now
shifted to online platform now the institution has more customer. Also as the travel restrictions
are now not there people can start travelling again and will and also the company like TUI will
be able to make income again. In this report we can understand about the working of the TUI
group and how they work there are lots of as what are its direct and indirect competitor and we
can also understand the impact of covid on the company internal as well as external factor and
also we discuss what the effect of Govt. policy on the TUI company internal and external
environment.

REFERENCES
Books and Journals
Pokrývková, J and et. al., 2021. The Urban Environment Impact of Climate Change Study and
Proposal of the City Micro-Environment Improvement. Sustainability, 13(8), p.4096.
Ramachandran, G., Behnassi, M. and Tripathi, G.C., 2021. The Anatomy of Uncertainty and
Implications for Preventive Environmental Management. In Social-Ecological Systems
(SES) (pp. 239-253). Springer, Cham.
Campagnolo, D and et. al., 2022. SMEs facing crisis: ideal response or equifinal reactions?.
In Business Under Crisis Volume I (pp. 63-84). Palgrave Macmillan, Cham.
Ringland, G and et. al., 2020. Scenarios and roadmapping-how to navigate an uncertain future.
Richter, S and et. al., 2022. What Drives a Future German Bioeconomy? A Narrative and
STEEPLE Analysis for Explorative Characterisation of Scenario
Drivers. Sustainability, 14(5), p.3045.
Kelly, P.C., 2018. Applying STEEPLE to course and curriculum design. Compass: Journal of
Learning and Teaching, 11(1).
Nudurupati, S.S., Garengo, P. and Bititci, U.S., 2021. Impact of the changing business
environment on performance measurement and management practices. International
Journal of Production Economics, 232, p.107942.
Steyn, R., 2020. Leadership Styles and Organisational Structure. International Journal of Human
Resource Studies, 10(3), pp.98116-98116.
RECTOR, D., 2019. Organisational Structure.
HÖrisch, F and et.al., 2022. Large-Scale and Green? The German Covid-19 Stimulus Package in
International Comparison. German Politics, pp.1-28.
Song, L. and Zhou, Y., 2020. The COVID‐19 pandemic and its impact on the global economy:
what does it take to turn crisis into opportunity?. China & World Economy, 28(4), pp.1-
25.
Ioannides, D. and Gyimóthy, S., 2020. The COVID-19 crisis as an opportunity for escaping the
unsustainable global tourism path. Tourism Geographies, 22(3), pp.624-632.