Business Environment of TUI Group: Impact of COVID-19 and UK Plan

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Added on  2023/06/09

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This report provides a comprehensive analysis of the business environment surrounding TUI Group, a major player in the tourism industry. It examines both the internal and external factors influencing the company's operations, with a particular focus on the impact of the COVID-19 pandemic and the UK government's subsequent recovery plan. The report details how the pandemic negatively affected TUI Group's internal environment, including weaknesses in its operations due to lockdowns and travel restrictions. It also explores the opportunities arising from the recovery, such as scaling operations and adopting new technologies. Furthermore, the report assesses the influence of the UK government's recovery initiatives on TUI Group's micro-environment, including policies and guidelines for safety and economic recovery. Finally, the analysis incorporates a STEEPLE framework to evaluate the broader social, technological, economic, environmental, political, legal, and ethical factors impacting TUI Group's operations.
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Business Environment
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Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Section 1...........................................................................................................................................3
Summary.....................................................................................................................................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...........................................................................................................................................6
The impact of the UK government's recovery plan on TUI Group's micro-environment..........6
The impact of the COVID-19 Pandemic on TUI Group's micro-environment...........................6
Section 4...........................................................................................................................................7
The impact of STEEPLE factors on TUI Group's Operations....................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Business environment refers to Those who affect the process of decision making and operations
as well as productivity of Entire commercial business. This also shows the internal as well as
external elements that impacts the business indirectly and directly as well. At the time when the
external atmosphere means to the elements that influence the environment of the organization in
which it is operating negatively and positively those operations are human resource, recruiting,
finance and various more (Wittenstein, 2022). In addition to that external environment of the
business means to such elements that affects the operations of the commercial business
positively and negatively. Moreover to this the following report is based on the organization
tourism union international group. the organization specialises in providing the services of travel
and tourism to their consumer base and it was founded in the year 1923. Furthermore the
organization is having its headquarters in Berlin Germany. The following report will cover about
the brief understanding regarding the environment of the business its internal as well as external
factors and it will also cover about the influence of pandemic COVID 19 on the respective
organization. In addition to this it will also cover about the influence of the recovery plan of the
government of the United Kingdom on the micro environment of the respective organization. it
will also include about the effect of the several external framework on the operations of the
respective company.
.
TASK
Section 1
Summary
Tourism union international group is one of them largest tourism organization in the
whole globe. The organization offered several different services regarding airlines, cruise, hotel
portfolio and also different travel practices (Tiwari, 2022). The respective organization function
in more than 350 hotels around the world and offering top quality services tune in the market
area. In addition to this the organization is functioning globally in around 180 places I the
company has also more than 15 cruise lines as well as 5 airlines that is having 150 aircrafts.
Moreover to this Serving more than 20 million consumers globally then providing entire tourism
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value chain to them. The industry of tourism representing consistent growth and enhanced GDP
for specific period of time and this is considered to be amazing excellent way to make the
commercial business to grow and attain success in market area. (Tapaninaho, 2022).
Moreover to this the goals of the respective organization is to promote well being as well as
education for children and young individuals. The objective of the tourism union international
group is to create optimistic influence on the travel and tourism of different locations also
consumers globally. The organization is based on Germany and it is dealing in travel sector. This
sector is basically separated into several different subsectors that involves hospitality regarding
facilities, travel as well as accommodation. The organization suitable opportunity to their
consumer base, shareholders as well as workers workers.
Organizational Structure
The structure of the organization is basically examined by the practices as well as data of
the organization accordance to accomplish goals as well as objectives. The system and structure
also creates the functions of the organization more effective as well as efficient. In addition to it
essential structure of the organization divided into several elements. The structure of the
company means how information of the operation flows from the different levels in the
commercial business. Moreover to this the company terrorism union international focus on
working with the functional structure that is basically Very useful for the organization in order to
grow and attain success in its market area which will assist them in having the edge over their
competitors (Tang, and et.al., 2022)
Section 2
The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.
Internet atmosphere unknown to be such environment that is in the organization. SWOT
analysis is very advantageous for the organization In accordance to show the influence of the
pandemic of the respective organization that is described in brief:
Strengths- That tourism union international group offers top quality services in the
industry of hospitality or facilities for their consumers in different cruise lines as well as
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airlines because of this they are getting more brand recognition as well as goodwill in the
market area because of enhanced satisfaction of the consumers. During the how to break
off for virus government of the UK minimises the interest on tax and because of this
management of the company was earning more revenue in the operations of the business.
Weaknesses- The sector of tourism basically was negatively influenced because of the
pandemic COVID-19 From previous few years and because of this it creates negative
influence on the operations of the company because of the imposed lockdowns and other
restrictions in different parts of the world (Roux, and Lecocq, 2022). In addition to
travellers as well as consumers are more afraid in order to go out in travel so they prefer
to be at their home in order to prevent the outbreak of coronavirus. This act as the major
weakness of the organization.
Opportunities- tAfter the corner virus pandemic management of the respective
organization can scale their operation in to the Newmarket area which came message
time in increasing their sales revenue and goodwill. Management opted several latest tech
in order to acquire the more consumer ways in order to travel from there organization
which can assist them in increasing their chances of success in growth.
Threats-Because of the pandemic COVID 19 of the respective organizations because of
the lock down another state guidelines for a room 2 years international travelling loss on
the respective company. Management was not able to operate suitably as they were also
losing their consumer base as well.
The impacts of the UK government's recovery plan on TUI Group's internal Environment.
The government of the United Kingdom is basically focused in order to assist the
industry of tourism and to minimise the loss which is basically caused during the pandemic
situation as early as they can. the government also requires to minimise the impact of this
situation and focus on recovery plan in all the regions in the country in which both rural and
urban regions are involved (McDowell, 2022). The government of United Kingdom make the
plan of action and recovery plan and because of this day impose several policies and protocols
and provide the suitable guideline in order to prevent the outbreak and infection among the
common people of the nation. These such guidelines involves people travelling from one
location to another need to wear face mask mandatory and maintain social distance among each
other. The management of the respective company focus on avoiding all the specific protocol
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and guidelines which are imposed by the government for the safety as well as health of the
workers and consumers..
Section 3
The impacts of the UK government's recovery plan on TUI Group's micro-environment
The government of the United Kingdom released several guidelines and policies for the
safety and health of the people and also too safety from the spread of the virus in different
people. In addition to it the government of the United Kingdom plan of action of recovery
represents that in order to recover the economic loss of the sector of tourism and to suitably build
and recover it from to pandemic (Mamedova, and et.al., 2022). Moreover to this government
also minimises the rate of interest on tags the organization can also plan to provide suitable
rewards as well as discount coupons to their consumer base and travellers that can give the
company in edge over their competitors as well. The consumers can also use the operations and
services of the company in order to travel which can assist the company in order to start earning
more income which will assist them in giving more opportunities of business as well as earn
more profitability which will lead to the long term success and sustainability of the company in
the market area.
The impacts of the COVID-19 Pandemic on TUI Group's micro-environment.
The company encounters enhanced level of decline in travellers as well as employment and
because of this workers of the organization are losing their specific job positions. For the
industry of the world tourism is basically negatively impacted by the pandemic and the
respective organization encountered range of problems and issues which are declining demand,
Losing consumer base and cancellation on ticket by the passengers because they’re afraid of
travelling from one location to different because of this company was facing major breakdown in
its economy and growth (Fergnani, 2022)
. This is also crucial in order to evaluate the micro atmosphere of the respective company at the
time of making several decision regarding the operations of the company as well as making the
suitable strategy for their long term success and growth in the market area and to overcome the
effect of the outbreak. In addition to wait the respective company focus on implementing several
appropriate techniques in order to prevent the impact of the pandemic and they are also planning
to scale up their operations in different market area as well as they are expanding the range of
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technology through which they can provide suitable message to their consumer base with the
assistance of several different platforms of digital media and attempting to solve the queries of
different consumers around the world.
Section 4
The impact of STEEPLE factors on TUI Group's Operations
Social Factors-Management of the respective organization evaluates the culture as well
as behaviour of the different countries in which they function and management is more
capable to manage the wide network of consumers and travellers worldwide.
Technological Factors- Advancement is technology is very crucial for the respective
company as management is shifting towards digital method by utilizing technology for
the success and growth of the organization such as hotel and flights booking can be now
done online (Armasar, 2022)
Economical Factors- UK is known to be the one of the largest economy around the
world and because of pandemic entire economy of the country starts to decline which has
a major influence on the operations of that travel union international group as well.
Environmental Factors-This factor has a very crucial role in examining the political
status which can influence the sustainability of the respective company specific nation so
management of the respective organization needs to follow all the policies and
regulations of the particular country in order to smoothly operate their functions..
Political Factors- This factor has a very crucial role in examining the political status
which can influence the sustainability of the respective company specific nation so
management of the respective organization needs to follow all the policies and
regulations of the particular country in order to smoothly operate their functions.
Legal Factors- Legal authorities of different nations impose several laws and policies
for betterment of their consumers,, environment, and employees as well that the company
needs to follow respectively.
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Ethical Factors-This factor refers to the moral principle and values that formulate the
activity of a particular person and the workers of the travel green international group a
bytes every code of conduct and values which are imposed by the company.
CONCLUSION
For all the above report it has been concluded that the environment of the business is the
collection of entire factors internally and externally that influence the operations of the business.
Addition to it the pandemic has also negatively impacted the respective company and the
recovery plan of the government of the United Kingdom provide assistance to the sector of
tourists in recovering from the impact of pandemic. At the time of pandemic legal rathore it is
also minimises the rate of interest on tax that advantages for the sector of tourism and hotel in
order to recover from their losses.
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REFERENCES
Books and Journals
Armasar, I.P., 2022. The Role of Projects in the Strategy for Developing the Language Skills of
Business Students. Bulletin of the Transilvania University of Brasov. Series V:
Economic Sciences, pp.77-82.
Fergnani, A., 2022. Corporate foresight: A new frontier for strategy and management. Academy
of Management Perspectives, 36(2), pp.820-844.
Mamedova, N., and et.al., 2022. Optimal model of it directors interaction in the digital
transformation of business processes. Technology Analysis & Strategic Management,
pp.1-13.
McDowell, W.C., 2022. The impact of organizational efficacy and flexibility on small business
performance. The Coastal Business Journal, 12(1), p.1.
Roux, B. and Lecocq, X., 2022. A Necessary Evil: The Role of the Secretariat in Effective Meta-
Organizations. Lessons from the Multilevel Study of a Business Cooperative. M@ n@
gement, 25(2), pp.60-76.
Tang, Y.M., and et.al., 2022. Industry 4.0 technology and circular economy practices: business
management strategies for environmental sustainability. Environmental Science and
Pollution Research, pp.1-18.
Tapaninaho, R., 2022. Stakeholder Value Creation at the Intersection of Business and
Sustainability.
Tiwari, S.P., 2022. Organizational Competitiveness and Digital Governance
Challenges. Archives of Business Research, 10(3).
Wittenstein, D., 2022. Champions of Digital Transformation?. In Managing Digital
Transformation (pp. 35-73). Springer Gabler, Wiesbaden.
Zoaka, J.D., and et.al., 2022. Will financial development and clean energy utilization rejuvenate
the environment in BRICS economies?. Business Strategy and the Environment.
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