TUI Group's Business Environment: COVID-19, Government Plan

This report provides a comprehensive analysis of TUI Group's business environment, focusing on the impacts of the COVID-19 pandemic and the UK government's recovery plan. It begins with background information on TUI Group, highlighting its operations in the hospitality and tourism industry. The report then delves into the effects of COVID-19 on the organization's internal and micro environments, including decreased operations, job insecurity, and loss of customers. It further examines the UK government's recovery efforts, such as tax reductions, and their impact on the company's ability to recover from losses. The analysis also incorporates a STEEPLE (Social, Technological, Economical, Environmental, Political, Legal, Ethical) framework to assess the various factors influencing TUI Group's operations, concluding with the importance of identifying both intrinsic and extrinsic environmental factors and the role of legal and ethical considerations in the company's operations.

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
SECTION 1. Background information about TUI group................................................................3
SECTION 2. Covid – 19 issue and government recovery plan for intrinsic environment of the
organisation. ....................................................................................................................................4
2.1 Impact of Covid – 19 on organization and its internal environment...............................4
2.2 Impacts of the UK government’s recovery plan on the company intrinsic environment.4
SECTION 3. Covid – 19 issue and Government recovery plan in the micro environment............5
3.1 Impacts of the UK government’s recovery plan on the company micro environment....5
3.2 Impact of Covid – 19 on company micro environment....................................................5
SECTION 4......................................................................................................................................5
Impacts of STEEPLE factors on organizational operations...................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journals.................................................................................................................8

INTRODUCTION
The term business environment means the inside and the outside factors that affects the
working of the business. The environment of the business is generally classified into two main
categories namely macro and micro environment. The macro environment consists of factors that
affects the business on the large scale. The micro environment covers the factors that effects the
business organisation on the small basis. It is mainly affected on the internal and the external
factors. The factors that arises from outside the business is called as the external factors. The
factors that affects the business internally are called as the intern sic factors(Azmat, et.al, 2018).
The purpose for preparing this report is to get the better knowing on the subject of business
environment along with its factors. This report would also discuss about the TUI group along
with its impact of Covid19. It would also outline the UK government recovery plan at both the
micro and macro level on the organisation.
SECTION 1. Background information about TUI group
The TUI Group is a public sector organisation that deals in hospitality and tourism
industry. This organisation was established in year 1923. its headquarter is in Berlin, Germany.
This industry has various cruise lines, hotels, merchandise, etc. It also has five airlines all over
the world. The Chief finance executive of the organisation is Friedrich Joussen. Its chairman is
Dieter Zetsche. According to the report in 2021, the revenue of the institution is 4.732 billion
Euros as its operating income along with the net income was -2.025 billion euros. The institution
is having 50,584 employees. Moreover, the other company like Thomas cook, last minute,
holidays, etc. are some of its famous competitor. The main centring of the institution is to grow
faster in the competitive market(Gleim, Smith and Cronin, 2019). This company was known as
Preussage Ag a few years back in 1979. In initial stage, this organisation use to do mining for
generating profits for the company. Moreover, the company is being listed on two stock
exchange which is the London Stock Exchange and the Frankfurt Stock Exchange. The products
that is being offered by the institution includes the Charter and airlines, cruise lines, resorts along
with the hotels and package holidays. Further more, the organisational structure that the
administration follows is a blandish hierarchy. This refers that the top organisation has a direct
link with the lower level of administration.

SECTION 2. Covid – 19 issue and government recovery plan for intrinsic
environment of the organisation.
2.1 Impact of Covid – 19 on organization and its internal environment
The impact of Covid19 is very bad on the tourism and hospitality industry. The main
reason behind this is the lock down period for long time all over the globe in order to decrease
the spread of the disease. The lock down has resulted into the no operations in the hospitality
industry. This is because during the lock down period all the people are at their homes and doing
work from home. The people were not allowed to move out from their homes. The hospitality
industry is basically based on the tourism. This is because the generation of the profits in case of
hotels comes only when the tourists comes to visit the tourist places all over the world. But, as
the people are not allowed to do so, there were no guests in the hotels during the lock down
period. Hence, there is the huge loss to the tourism industry. This is the reason that the working
of TUI groups continuous to decrease which as a consequence resulted into bearing a lot of loss.
The working culture of the institution became very bad for the employees in the organisation.
Moreover, the workers of the company do not feel safe because they are always in anxiety of
loosing their job(Hamilton and Webster, 2018).
2.2 Impacts of the UK government’s recovery plan on the company intrinsic environment
The UK government has made a lot of efforts in order to bring back the tourism industry
in its original position. There are various cases where the employees of the company has to be
dismissed without any wrongful act done by them. This is because the company is not able to
pay the employees as there were not source of income for the hotels in the lock down period.
Hence, many people became unemployed who were previously involved in the hospitality
industry. So, in order to support the tourism industry, there are various policies formulated by the
government to backed up the tourism industry in the country. The government has decreased the
tax rates on the tourism and hospitality industry. This can be seen that by this help of the TUI
Group has recovered to a huge extend from the losses that was incurred in the lock down
period(Hirao, 2021).

SECTION 3. Covid – 19 issue and Government recovery plan in the micro
environment
3.1 Impacts of the UK government’s recovery plan on the company micro environment
The government of UK has planned various recovery options for the tourism industry to
back up these organisations into its previous position in the market. So, for this, the government
of United Kingdom has reduced the rates of tax on the tourism and the hospitality industry. This
reduction has helped both the company and the customers. This is because the company is now
giving more cashback and discounts on the bookings done by the individuals in the hotels and
other tourism. This has aided the customer as they would pay less for the tourism. Hence, this
has directly impacted the internal environment of the company. Moreover, the company would
now earn more profit in the market by its customers(Makini, et.al, 2021).
3.2 Impact of Covid – 19 on company micro environment
Due to the Covid19 pandemic, the TUI group has lost lots of consumers. The passengers
obstructed travelling in country UK which results in loosing all the funds the establishment with
them. The institution starts up providing 20% discounts with extra 20% more discount on the
payment done in advance by the customers, but then also the result remained the similar. The
revenue of the institution is decreasing in the organisation. The institution constantly is going
under huge losses even after giving discounts to the customers. The company has also paid extra
in the training sessions that are being done for the newly hired employees of the company. The
employees are newly hired because the old employees were terminated in the lock down period
by the organisation. Moreover, the age group of 16-24 years has the biggest fall with respect to
the employment along with the the visitors fell by 21.3% within the three months(Preece, 2020).
SECTION 4
Impacts of STEEPLE factors on organizational operations.
The STEEPLE factors explains about the internal and external capabilities of the
organisation. All these factors are discussed in detail below-
 Social factor – The societal factors are those factors that comes from the culture and the
norms of the society in which the customer is living. It includes the taste preferences of
the individuals while buying any type of commodity or using any type of service that is
being offered by the organisation. Moreover, the TUI groups takes care of the preferences

and tastes of the tailored. For instance, the level of education or standard is high in the
customers of TUI groups.
 Technological factor – The technological factors are those factors that is related to the
technology of the company. It also includes various innovations that are being used in the
operations of the company. The TUI Groups has used various technological innovations
ion order to make it more efficient and competitive in the present market. For instance,
use of online bookings for the rooms in the hotel of TUI Group is the example of the
technical factor(Salameh, 2019).
 Economical factor – The economic factors are these factors that are related to money.
These are factors that directly impacts the economy of the company. The TUI groups lost
its customers support up to 23% because of the Covid pandemic period. These factors are
not directly in the control of the business concern. For instance, growth in the economy
and development of the country.
 Environmental factor – These are the factors that are being impacted directly by the
natural environment in which the company is established. These factors cannot be
controlled by the individuals. It includes the bad weather conditions that would impact
the flights being operated by the organisation. The bad weather condition would delay in
the flights of the company that would cause loss to the organisation(Tresna, 2017).
 Political factor – These are the factors that are being controlled by the government.
These have the direct control of the government of the UK. The governmental policies
are the example of the political factors. These policies directly impact the working of the
organisation along with its generation of revenue from different sources. Moreover, the
reduction in the taxation policies have affected the revenue of the TUI Group after the
pandemic.
 Legal factor – The legal factors are related to the laws and regulations of the country.
These directly impacts the working of the organisation. This is because the laws are being
mandatory to be followed by every organisation. Moreover, when the rules are framed
by the management of the company, then it is to be followed by every employee of the
company. In addition to this, if these rules are framed by the legislature, then it is to be
followed by all the companies in the country. The TUI Group has followed all the laws of
the UK government.

 Ethical factor – The ethical factors are based on the ethics of the company. The ethics
are basically related to the morals of the society. It is to understand that the operation or
the act that is to be done is ethically correct or not in the organisation. So, the ethics are
to be considered as the code of conduct. Moreover, The TUI groups takes cares that all
worker follows all the code of conduct that is being framed by the management in order
to maintain the peace and order in the company. For instance, equal pay for equal work
policy is to be followed in every institution(Vlados and Chatzinikolaou, 2019).
CONCLUSION
The above report concludes that the business environment is crucial to identify the
intrinsic and outside environment that affects the businesses directly and indirectly. This report
also concludes about the pandemic that has affected the company in long manner along with its
loss to the customers. It also summarises about the negative impact of Covid 19 in the
organisation. It also discusses about the role of government in uplifting the tourism industry after
the lock down period. This report has also summarises about the external and the internal factors
that impacts the revenue earning power of the company. Finally, it concludes about the legal and
the ethical factors that impacts the working of the institution.

REFERENCES
Books and Journals
Azmat, G., et.al, 2018. Universities and industrial strategy in the uk: Review of evidence and
implications for policy.
Gleim, M.R., Smith, J.S. and Cronin Jr, J.J., 2019. Extending the institutional environment: the
impact of internal and external factors on the green behaviors of an individual. Journal
of Strategic Marketing, 27(6), pp.505-520.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hirao, M., 2021. External Diseconomies of Business Improvement Districts: Negative Impact on
Residential Property Values–Evidence from the City of Westminster. International
Journal of Public Administration, 44(8), pp.648-664.
Makini, S.O.,et.al , 2021. Board Structure and Performance of Companies Listed At The Nairobi
Securities Exchange: The Influence of External Environment. DBA Africa Management
Review, 11(1), pp.97-114.
Preece, C.N., 2020, October. Modeling the external business environments for the Vietnamese
construction SMEs in a transition economy. In IOP Conference Series: Materials
Science and Engineering (Vol. 945, No. 1, p. 012052). IOP Publishing.
Salameh, R.S., 2019. WHAT IS THE IMPACT OF INTERNAL CONTROL SYSTEM ON THE
QUALITY OF BANKS'FINANCIAL STATEMENTS IN JORDAN?. Academy of
Accounting and Financial Studies Journal, 23(5), pp.1-10.
Tresna, P.W., 2017. External and internal environment analysis (a study in tasikmalaya city
embroidery industry). Review of integrative business and economics research, 6(1),
pp.401-11.
Vlados, C. and Chatzinikolaou, D., 2019. Methodological redirections for an evolutionary
approach of the external business environment. J. Mgmt. & Sustainability, 9, p.25.