Analysing TUI Group's Business Environment: A UK Case Study Report

This case study report analyzes the business environment of TUI Group between 2019 and 2022, focusing on the factors that shaped its operations within the United Kingdom and globally. It examines the impact of the UK government's tourism recovery plan and the COVID-19 pandemic on TUI Group's internal and micro environments. The report utilizes the STEEPLE framework for macro-economic analysis, assessing social, technological, economic, environmental, political, legal, and ethical factors affecting the company. It covers TUI Group's business overview, organizational structure, competitive landscape, and the challenges and strategies employed to navigate the dynamic business environment, concluding with an assessment of TUI Group's market orientation and the importance of anticipating future contingencies.

BUISINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ...........................................................................................................................................3
Business overview...................................................................................................................3
Size of the TUI Group...............................................................................................................4
Sector and industry of operation.............................................................................................4
Exposition of the Direct and indirect competitors of the group..............................................4
Organizational structure and leadership team of TUI Group...................................................5
TASK – 2 ..................................................................................................................................................5
The consequence of the UK government’s recuperation plan on TUI Group’s internal environment.
................................................................................................................................................5
The wallop of the Pandemic on TUI Group’s internal environment........................................5
TASK – 3 ..................................................................................................................................................6
The effect of the Pandemic on the functioning of the TUI Group’s micro-environment.........6
TASK – 4 ..................................................................................................................................................7
The utilisation of STEEPLE for the macro-economic analysis for the analysis of the impact over the
functionating of the TUI Group................................................................................................7
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
The construction of the report is to deal with the explication of the TUI Group's internal
and the external analysis of the business environment that influences the functions and the
operations of the company. The elucidation in regards to the effects off the pandemic over the
contemplation of the UK government's plan for the maintenance of efficacy in the company will
also be highlighted. The internal business environment thereby refers to as the composition of
the organizational structure, functionality of the human resources, the capabilities in respect to
the technological and physical abilities and the integration of the culture, mission and the vision
of the company. The external business environment infers to the consistency in the legal,
political, social, economical, global and the competitive segment of a company which is critical
for the management to consider their relative impact upon the administration of the company.
The macro environment thereby comprise of the definite set of conditions that are existing in the
economy of a nation and thus regulates the trends of the inflation, expenditure, polices related to
fiscal and monetarily aspects and the enumeration of the GDP (Allan, 2022). The micro business
environment on the other hand strikesa direct contact with the effects of the company which
influences the day to day tasks and the performances of the personnel in respect to the
achievement of the coveted standards.
MAIN BODY
TASK – 1
Business overview
A brief overview of the TUI Group can thereby be presented. The company is a reputed
organization which deals with the international tourism and the hospitality management through
the provision of distinguished offerings of tour packages, bookings of the cruises and flights with
the help of more than 1800 travel agencies assembled through a comprehensive network. The
headquarter of the group is in Germany and was established in the year 1923. The operations of
TUI Group includes the functioning in the prominent European airlines which makes it the
largest tourism group in the entire Europe.

Size of the TUI Group.
The subsidiaries of the TUI Group is a consolidation of 272 direct as well as indirect
companies as per the recent report published in the year 2021. A furthermore affiliation of 27
joint ventures were also included in the financial statements of the company (Choudhary and
Pandita, 2022). The generate revenue of the company for the year 2021 was 4,731.6 million
euros through the operations of the hospitality and the tourism segments of the company.
Sector and industry of operation
The acceleration of the group has been made possible because of the strategical plan of
action implement by the TUI Group. The integrative plan has enable the attainment of the
markets share between the range of 20% to 40%. the significant growth of the operations of the
business has enabled the acquisition of the customers through the utilization of the digital
platforms soon after the impact of the pandemic over the market.
Exposition of the Direct and indirect competitors of the group.
The assessment of the rivalry penetrating in the business world is imperative to drawn significant
analysis regarding the impact of the trade over the success ratio of the organization. The
prominent and the major competitors of TUI Group are:
Transat
Thomas Cook
Jet2holidays
On the Beach
Through the creation and the assimilation of the proficiency of the product differentiation and by
the creation of unique experiences for the customers helped the brand to attain the position in the
marketplace and also proved to be an aid in the achievement of the brand loyalty in the market
(Huang and et. al., 2022).

Organizational structure and leadership team of TUI Group.
The enumeration of the organizational structure of the TUI Group possess the trait of
flatter hierarchy, , making its close to the operations of the business. The integration of the TUI
AG and the TUI Travel has enable to function at a faster pace. The operations of the business has
been segmented in three varied regions:
Northern Region
Central Region
Western Region
The leadership team of the TUI Group comprises of the Executive Board, Supervisory Board and
the Group Executive Committee and they are distinctively responsible for the handling of the
management of the business in a viable and an executable manner (Iivari and et. al., 2022).
TASK – 2
The consequence of the UK government’s recuperation plan on TUI Group’s internal
environment.
The implementation of the UK government's recovery plan for the growth of the tourism
division which faced a harsh downfall in the period of the pandemic helped in the acceleration of
the business of the TUI Group. The plans set by the governing bodies is a definitive framework
which proved to be aid in the prevention of the job loss of the workforce working in the company
for significant period of time. The global outbreak of the situation lead to an increase in the
unemployment of the citizens and the reconstruction of the plan laid down by the UK officials
had definitely provide a sense of relief in the society. The intervention of the government has
protected the business and jobs of the people through the implementation of the furlough scheme
(SIMIONIDES, 2022).
The wallop of the Pandemic on TUI Group’s internal environment.
The impact over the management of the internal business environment of the TUI Group
was considerate in respect to the situation of the pandemic prevailing in the economy. The
disruption in the organizational structure, loss of the human resources, disturbance in the

integration of the value system of the customs impacted the organization in a significant manner.
For the compensation, the interaction of the developmental programs made available by the
company association to build a sense of relief in the society (Kumar, Chawla and Patel, 2022).
The promotion of the tourism policies and the proposals, uplifted the level of sales in the
industry which compelled the management of the TUI Group to recruit back the potential
candidates who can take care of the operations.
TASK – 3
The effect of the Pandemic on the functioning of the TUI Group’s micro-environment.
The influence of the situation of the pandemic over the TUI group's economic drivers
present in the micro environment is critical to analyzed for the enumeration of the impact in a
distinguished manner. The restrictions imposed upon the travel due to the upsurge in the corona
cases disrupted the growth of the travel industry as a whole. The share of the tourism industry is
significant in stabilizing the economic fluctuations and thereby the relative impinging is epochal
to measure.
Acceleration in the transformational costs: The interest bearing loans of the TUI group,was
monotonically disarranged due to the surge in the cases of the pandemic which disrupted the
business environment of the marketplace. The stabilization assemblage introduced by the
company increased the expenditure, incurred because of the over utilization of the capital
reserves for the acceleration in the business to sustain in the market (Lee and Moumbark, 2022).
Imposition of travel restrictions: The enforcement of the restriction over the traveling during
the period of pandemic created a havoc in the tourism and the hospitality industry which lead to
the realization of significant losses to the TUI Group. This created disturbances in the
administration and the affluence of the micro economic factors such as the level of the
performances of the personnel in the operations and the conduction of the activities, had a major
influence in the achievement of the determined standards of the organization.

TASK – 4
The utilisation of STEEPLE for the macro-economic analysis for the analysis of the impact over
the functionating of the TUI Group.
The analysis of the external environment is necessary to ascertain the implication of the
macro and the micro economic factors that can have upon the functioning of the sustainability of
a company. The examination of these element in respect to TUI Group will thereby be carried
out.
Social: the changes in the varied segments of the society in respect to the variations in the social
divisions and the market research which is carried out to analyse the situations pertaining in the
business world. TUI Group has to scrutinised these changes and ensure the functioning of its
operation according to the prevailing market scenarios.
Technological: Technology has become progressive all across the globe. Modifications in the
production ameliorate the profit margin of an enterprise and thus heighten the overall revenue
generation through the methods which can offer new opportunities to TUI Group to retain its
position in the market (Nave and Rodrigues, 2022).
Economical: The economic state of affairs of a country can be apprehended by considering the
existing inflation level, unemployment, international trade and rate of growth. TUI Group must
ascertained the arrival of these situation in advance to comprehend its effects over the
functioning of the activities taking place in the company.
Environmental: The environmental characteristics evaluates the positive and negative
impinging, the company is having upon the environment. The environmental factors considered
in the STEEPLE analysis are legislation for the environmental protection, the effective
management of the disposals and prevention in respect to any sought of ecological damage
which can hamper the reputation of TUI Group in the market.
Political: Interventions of the government authorities like change or increase in the interest rate
can have a straight impact on the demand patterns of the organization. This factor can create
certain problems in the functioning of the commercial activities taking place at TUI Group The
influence of the political rift pertaining in the environment can hamper the operations of the
company (Popescu, 2022)..

Legal: Legal factors trade with authoritative complications. Thus to obviate any legal problem, it
is compulsory to check on the new legal regulations and policies to ensure complete compliance.
TUI Group should abide by the rules and the regulations in order to guarantee the efficaciousness
and that too in a the legal manner.
Ethical: Social values are an intrinsic part of the ethical facet of an administration that regularize
the behaviour of the personnel Woking in the company. The common ethical factors for the
STEEPLE analysis are the inclination of the people, the value of the perceptiveness of the group,
ethical motive, unity, responsibility, and demeanour of the employees towards the society that
must be taken into account by TUI Group (Rocha, Narcizo and Gianotti, 2022).
CONCLUSION
An inference can thus be made that the market orientation of TUI Group is strong enough
to retain in the market for a considerable amount of time. The contingencies that can occur in the
future because of the influence of the external forces must be ascertained in advance in order to
reduce the scope of harmful effects over the operations of the business. The analysis of the
external environment thereby explains the effectual presence of the distinguished factors that can
either help or hamper the efficacy of the company. These elements must be given significant
importance and certified measures must be formulate to ensure the expeditious and feasible
functioning of the company at the global level. The explication of organizational structure and
the composition of the business overview, provides the important and the most critical
information regarding the functioning and operation of the TUI groups. Thus, the conclusion
drawn from the above study reflects the assertiveness of the examination of the extraneous
business environment in advance to ensure the success ratio that has to be achieved for the
growth of the company.

REFERENCES
Books and Journals
Allan, R., 2022. Business environment finally set to take sustainability seriously. Appita
Magazine, (1), p.3.
Choudhary, P. and Pandita, D., 2022, May. Agile HR: The Need for the E-Business
Environment. In 2022 7th International Conference on Business and Industrial
Research (ICBIR) (pp. 274-278). IEEE.
Huang, H., and et. al., 2022. Assessing the role of financing in sustainable business environment.
Environmental Science and Pollution Research, 29(5), pp.7889-7906.
Iivari, M., and et. al., 2022. Opening Closed Business Ecosystem Boundaries with Digital
Platforms: Empirical Case of a Port. In Emerging Ecosystem-Centric Business Models
for Sustainable Value Creation (pp. 67-96). IGI Global.
Kumar, B., Chawla, N. and Patel, G., 2022. Resolving insolvency and ease of doing business
reforms in BRICS nations with particular reference to India.
Lee, H. and Moumbark, T., 2022. Climate change, corruption, and business bribes in South Asia.
Finance Research Letters, p.102685.
Nave, E. and Rodrigues, R.G., 2022. Economic development levels and ease of doing business: is
there a relationship?. Review of International Business and Strategy, (ahead-of-print).
Popescu, C.R.G., 2022. Fostering Creativity in Business: Empowering Strong Transformational
Leaders. In Handbook of Research on Changing Dynamics in Responsible and
Sustainable Business in the Post-COVID-19 Era (pp. 349-381). IGI Global.
Rocha, C., Narcizo, C.F. and Gianotti, E., 2022. Internet of management artifacts: Internet of
Things architecture for business model renewal. In Emerging Issues And Trends In
Innovation And Technology Management (pp. 297-316).
SIMIONIDES, E., 2022. Strategy within business environment redefining the strategy position in
the mckinsey 7s model. Proche-Orient Études en management, 33(2), pp.25-38.