TUI Group: Business Environment Analysis - COVID-19 and UK Recovery

This report provides a comprehensive analysis of the business environment surrounding TUI Group, a UK-based hospitality and tourism company. It examines the internal and external factors impacting the company, with a particular focus on the effects of the COVID-19 pandemic and the UK government's recovery plan. The report assesses the impact of these factors on both the micro and macro environments of TUI Group, including its customers, suppliers, and internal operations. Furthermore, it evaluates the consequences of STEEPLE (Social, Technological, Environmental, Economical, Political, Ethical, and Legal) factors on the company's operations, highlighting the challenges and opportunities TUI Group faces in navigating the evolving business landscape. The analysis covers aspects such as revenue decline, workforce management, government support, and technological advancements, providing a holistic view of the company's current situation and future prospects.

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION 1......................................................................................................................................3
SECTION 2......................................................................................................................................4
Impact of Covid – 19 on company internal environment...........................................................4
Impacts of the UK government’s recovery plan on the company internal environment............5
SECTION 3......................................................................................................................................5
Impact of Covid – 19 on company micro environment..............................................................5
Impacts of the UK government’s recovery plan on the company micro environment...............5
SECTION 4......................................................................................................................................6
Impacts of STEEPLE factors on companies operation...............................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.....................................................................................................................8

INTRODUCTION
Business environment refers to all the factors by whom business are impacted either
externally or the internally. The business environment are further separated into two parts that is
called as micro and macro environment and they are also known as the external environment.
The factors inside the organisation which are affecting the working is known as internal business
environment and all the outside factors which is affecting the working condition of the
organization is known as external environment. In the micro business environment it includes the
internal suppliers, workers who is working within the organisation, the rival companies and the
investors. The organization for controlling all the factors that are in their hands can be done by
both the macro and micro business environment. Under the macro business environment it
includes all the factors that are affecting the business and are not be control by the company.
Those factors can be political,legal,moral,technical, economical and environmental factors. The
primary aim of making this report is to get the better knowledge related to the business
environment and their factors. This report is going to assess about the TUI group, their impact of
Covid-19 and the United Kingdom recovery plan at both the micro and macro level and at the
end going to assess the consequence of STEEPLE factors on the organization.
MAIN BODY
SECTION-1
Tui group is the public limited company based out in United Kingdom which is deals in
the hospitality and tourism sectors. The company has been established in 1923 and its
headquarters in the Hannover and Berlin. It has its owns different travel agencies , cruise,
merchandise shops, hotels and in the last five airlines in the Europe either fully and partially
ownership. Fredrich Joussen is appointed a the CEO of the company, Dieter Zetsche is
appointed as the Chairman of board of the supervisory, Sebastian Ebe is appointed as CFO, Peter
Krueger is the associate of executive board strategy, Sybille Reiss is appointed as the HR and
Frank Rosenberger is appointed as the manager of the IT team. As per the annual report of the
company, the revenue stood at 4.732 billion euros, the operating and the net income were -2.025
and -2.481 billion euros. The company has total workforce of the employee around 50,584. They
has famous competitors such as Thomas cook, last minute, holidays, travel supermarket,
flayglobespan, transat, condor, sunwing and sunexpress . The prime objective of the company is
to have the faster growth. The company until the 1997 was known as Preussage and at that time

the company was engage in the field of mining. It has been listed on the exchanges of the United
Kingdom such as London stock exchange and on the Frankfurt stock exchange(Hamilton. and
Webster, 2018). On 9 October 1923 the company was registered as the mining industry and after
that it merges with the Ruhr coal company in 1972. There are different products that have been
offered by the company such as charter and schedule passenger airline, cruise lines, resorts &
hotels and packaged holidays. The organization follows the flatter hierarchy. It refers as the top
management is directly interlinked with the lower level management. It eradicate the delay in the
communication between the different levels managements because there is no middle level
management. It helps in to make directly communication and make decision very easy without
any delays. The activities which is performed within the organization is further divided into three
parts which is north region, central region and the western region. The majority of the company
shareholding is in the hand of the private investors with the holding of 37.5%. Unifirm limited
has the second largest shareholding which is 29.9% and the institutional investors has hold the
share of 26.1% and at the end Servergroup LLC and Riu Hotel S.A hold the 4.1 and 2.4
individually(Omar, and Fraser, 2020).
SECTION 2
Impact of Covid – 19 on organization internal environment
When the lock down announcement has been made all the interindustry had been
affected, but it effected the tourism industry the most because people were not allowed to go to
outside from their houses. There are huge numbers of restaurants and the hotels who has been
closed permanently because they don't have fund to operate which results in loss of huge sum of
money. In that circumstance, there are numbers of workers who lost their jobs because company
has no funds left for paying their wages. So after that incident it weakens the management of the
company. The working activity of the TUI group is continuously declining which resulted in the
lot of loss in the bookings. That also effected the working culture of the company and it start
getting worsen. The staff of the company doesn't feel secure as they scared about loosing their
job. All of this mismanagement affects the overall performance of the organisation. After the
post covid-19, the organisation started to expend a lot more on hiring the new employees and
give them the full training (Ananzeh, Al Amosh, and Albitar, 2022). This will take a lot of time,

efforts and the resource of the organization. It will increase the unnecessary expenses because
they are already facing the huge loss.
Impacts of the UK government’s recovery plan on the company internal environment
The United Kingdom's government has made a lot of efforts to taken a lot of steps to
bring back the tourism industry at its pre covid-19 levels. The government trim down the tax
rates of the tourism and travel industry so that the organization can make more profits and recoup
with their losses(Alexandrou, 2022). This will help the TUI group to get recover their losses and
start increasing the sum of revenue. Furthermore, businesses can partly be continued by
following government protocol. This help the employees to get their job backs and stated their
earnings. The working culture of the organization also become peaceful and the salary of the
employees can be paid timely (Mwakisaghu, 2019.).
SECTION 3
Impact of Covid – 19 on company micro environment
In the outbreak of the covid-19 pandemic TUI group's looses their lot of customers. The
travellers has put hold on their plans, this impacted the organizations and they losses their funds.
The organization started to providing 20% discounts on the pre-payments but it doesn't changes
the outcome. The organization revenue keeps on diminishing(Farrugia, 2018). The organization
has continuously booked their losses, even they lay off their employees but nothing occurred.
Even after the Covid-19 situation the organization has to bear the losses of hiring the new
employees and incurred expenses on their training. The highest fall in the employment has been
witness in the age group of 16-24 years and the visitors of the hotel fell by 21.3%. Because of all
this the organization has been faced looses in terms of loosing customers, decreasing revenue &
profits and loosing the employees (Mattioli, and Scheiner, 2022).
Impacts of the UK government’s recovery plan on the company micro environment
The recovery plan of United Kingdom is that they have reduced the tax rate in the
pandemic to gave the chance to the hotel industry to recover their losses. The government has cut
down the tax rates and the organization has started attracting the customers by giving discounts
for acquiring the new customers. It helps them to recover their losses. The customers are also
started taking the benefit of the discounts avail by the companies because of that organization is

having the competitive advantage over their peers. The customers get back again and again to get
benefited by the discount and it helps the organization to make more profit( Purwanto, 2020).
SECTION 4
Impacts of STEEPLE factors on companies operation
For knowing the internal capabilities and the elements present in external environment of
the company uses STEEPLE analysis.
 Environmental factor – Those element that are not in the control of the human such as
natural disaster are considers under the environmental factors. The TUI group owns a
number of flights and there is the probability that in the bad scenarios the organization
has plenty of backups with them. All the tools that can be used in the emergency services
are available within the organization.
 Social factor- it refers to the customers taste, preferences and the culture, these attributes
are considered as the asocial factor. The organization has to follow the different countries
religion and culture as they have to deal with the different countries travellers to stay in
their hotels and for acquire the attention of the customers the TUI groups has to take
seriously the taste and preferences of the customers.
 Political factor – The elements that is controlled by the authorities and in that they have
the full control of interference is under the political factor. The United kingdom has trim
down the taxes which will help the companies to recover their losses which they incurred
during the covid-19 pandemic, this will help the TUI group to start generating profit and
recover their losses.
 Technological factor- it refers to those technical changes and the innovations which are
affecting the demand and working of the company. The TUI group has adopted the
technology advancement in the early stages that is why they are having the attention of
the customers. They are implementing the fastest technology for providing the great
experience to their customers that gives them the competitive advancement over the other
.
 Economical factor- It refereed to those economical factors which are effecting the
organizational work and that is not in the control of the company and also it depends of
the economical performances of the organization, all these factors are considered as the

economical factor. Because of the pandemic the TUI groups has looses its customer base
by 23%. The condition was not controllable by the company. Company has been
launching different schemes for acquiring the customer but they are eventually loosing
their customer base.
 Ethical factor – It refers to check the activity and the policies which has been practised
within the organisation are morally right or wrong. In the organization a lot of norms and
regulations has been made which has to abide by the company as well as employees of
the organisation. The code of conduct are refereed as the ethics of the company. The TUI
group has the responsibility to ensure that the employees of the organization has follow
the code of conduct. The organization has their operation in different countries, so for
that they have make every norms according to the country's norms and culture.
 Legal factor - When the authorities made any legislation then it affect the organization
externally but when the company has changes their policy then it will affect the
organization externally. The TUI group has made a many changes in their policies that
will benefit their employee, improve their safety and health. But in the outbreak of covid-
19 pandemic, they have to lay off lot of their employees to retrieve their losses . Laying
off the employees affected the goodwill of the company in the market. Even the retained
employees has fells the afraid that they will also be fired. The changes that makes in the
policy of the company also affect the working environment.
CONCLUSION
From the above report it can be summarised that the business environment is considered
to be important to determine from which the internal and the external environment of the
business effecting it directly or indirectly. The covid-19 outbreak has affected the organization a
lot, as the company losses their customers and their revenues. The utmost proposal to the
organization is that they must grow their businesses. They should not dependent on the European
regions as they should also explore other countries to expand. The company should separate the
emergency funds in case any happening occurs that will help the company to survive. The United
Kingdom recovery plan helps the company a lot. At the end, the STEEPLE analysis helps to
analysis the external as well internal environment factors.

REFERENCES
Books and Journals
Alexandrou, N., 2022. Corporate Governance and Company Leadership During a Time of Crisis:
Duties, Responsibilities, and Liabilities of Directors in the UK. In Corporate Social
Responsibility and Governance (pp. 127-149). Routledge.
Ananzeh, H., Al Amosh, H. and Albitar, K., 2022. The effect of corporate governance quality
and its mechanisms on firm philanthropic donations: evidence from the
UK. International Journal of Accounting & Information Management, (ahead-of-print).
Farrugia, A., 2018. The reform of the doctrine of utmost good faith: A reconnaissance of the
developments and outcome with particular reference to the UK. In Governance and
Regulations’ Contemporary Issues. Emerald Publishing Limited.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Mattioli, G. and Scheiner, J., 2022. The impact of migration background, ethnicity and social
network dispersion on air and car travel in the UK. Travel Behaviour and Society, 27,
pp.65-78.
Mwakisaghu, J.K., 2019. Strategic management change. International Journal of Advanced
Research in Management and Social Sciences, 8(5), pp.8-22.
Omar, O. and Fraser, P., 2020. Small and medium-sized enterprise retailing in the UK.
In Entrepreneurship Marketing (pp. 202-221). Routledge.
Purwanto, A., 2020. Does Quality, Safety, Environment and Food Safety Management
SystemInfluence Business Performance? Answersfrom Indonesian Packaging
Industries. International Journal of Control and Automation, 13(1), pp.22-35.

(Hamilton. and Webster, 2018) (Omar, and Fraser, 2020) (Ananzeh, Al Amosh, and Albitar,
2022.) (Mwakisaghu, 2019.) (Mattioli, and Scheiner, 2022).( Purwanto, 2020)
(Farrugia, 2018) (Alexandrou, 2022)