Comprehensive Business Health Check Report for the TUI Group

This report provides a comprehensive business health check of the TUI Group, a major player in the travel and tourism industry. It begins with an introduction to the company, its objectives, mission, vision, and priorities. The main body of the report includes an in-depth analysis of the company's objectives, followed by SWOT and PESTLE analyses to evaluate internal strengths and weaknesses, and external opportunities and threats. The report also examines the impact of various factors on the business, reviews the effectiveness of the business operations, and suggests potential improvements. Furthermore, it includes a discussion on developing a business plan for enhancing the company's performance and concludes with a staff skill audit plan to identify shortcomings and suggest improvements. The report is well-structured, providing a detailed assessment of the TUI Group's current state and offering valuable insights into its strategic positioning and future development.

Business Health Check
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Table of Contents
TASK 1............................................................................................................................................1
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................1
Analysis of the objectives of the case study business............................................................1
SWOT and PESTLE analysis of the business........................................................................2
Impact of different factors on business..................................................................................5
Review of effectiveness of the business.................................................................................5
Determination of potential improvements in business...........................................................6
Developing a business plan for improving business..............................................................7
Conclusion.......................................................................................................................................8
TASK 2............................................................................................................................................8
Introduction......................................................................................................................................8
Main Body.......................................................................................................................................8
Developing staff skill audit plan.............................................................................................8
Way of improving shortcomings..........................................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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TASK 1
Introduction
Business health check refers to conduct overall assessments of the critical elements of
particular business in current circumstances. The present study is based on TUI Group which is
known as an Anglo-German travel & tourism company having headquartered in Hannover
Germany. It can be considered as the largest leisure, travel & tourism organisation at global level
and owns number of hotels, airlines, cruise ships, retail stores and travel agencies. The given
report will focus on objectives, mission, vision, goals and priorities of selected business along
with conducting SWOT & PESTLE analysis (Ransbotham and et. al., 2017). It will also include
different factors which impacts on business and effectiveness of the selected business
organisation. The potential improvements that could be made in business are given below.
Main Body
Analysis of the objectives of the case study business
The travel & tourism sector provide support to tourist for visiting different places through
providing them all the desired services to make their holidays better. It includes the facilities to
fulfil actual needs of customers in order to make their trips more comfortable and enjoyable. In
context of TUI Group, they have certain objectives, mission and priorities in terms of completing
them by providing proper services for people.
Objectives – The objectives of TUI Group are given here.
 To render high standard of facilities favourable for people seeking conformable, relaxing
and memorable experiences of their trips.
 To give tourist market with the quality personal required through appropriate efforts.
 To develop expedition and memories that would satisfy each & every single desire of
clients (Nelson and Staggers, 2016).
 To analyse the present cultural, economic and social problems affecting service of travel
agency.
 It consist to participate in both local and regional community facility by giving general
lectures, consultation and training programs.
 To provide proper facilities by taking suggestions of holidaymakers to fulfil actual
desires of different clients.
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 To render better services by maintaining respect and economic development to achieve
the vision of think travelling, think about TUI.
Mission – The mission statement of TUI Group is 'With the help of holidaymakers we
are harnessing the positive impacts of tourism to make a difference for people and places in
destinations at the global level'.
Vision – The vision statement of TUI Group is 'Think travelling and think about TUI'. It
consist the criteria of creating exceptional travel experiences by keeping environmental footprint
to minimum, respect cultures & people and promote economic development in host countries
(Wang and Byrd, 2017).
Goals – The TUI Group remain transparent regarding their spending as the overall cost of
operations of TUI care foundation are covered by TUI. It consist to concentrate on solutions
besides of problems and strongly believe that tourism can be a global force as it can facilitate to
bring individuals together and fosters cultural understanding as well as solidarity. However, it is
responsible for transferring information & prosperity along with driving the development of
societies at global level. In addition to this, TUI Group believe to work and act globally which
facilitate a meaningful impact on citizens and places. Moreover, They prefer to involve
holidaymakers in their work through motivating them to establish a positive difference in the
destinations (Camp And et. al., 2019).
Priorities – The priorities of TUI Group consist maintenance of trust factor considering
reliability, consistent and quality. It includes to remain unique involving exclusive and designed
around people and become inspiring with freshness as well as effortless.
SWOT and PESTLE analysis of the business
The internal and external factors of business impacts on operations of an organisation in
either positive or negative manner. It is necessary to conduct analysis these components in
respect of TUI Group in order to make desired decisions for betterment of services. However,
internal factors consist to determine strengths, weaknesses, opportunities and threats of
organisation through the help of SWOT analysis. Moreover, the external environment which
impacts the operational activities of TUI Group that including PESTEL analysis.
SWOT analysis of TUI Group
Strengths Weaknesses
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 It is known as a well recognised brand
in market having strong goodwill
among people due to trading status.
 It has a superior management team and
effective operations which is beneficial
to improve effectiveness of services
because of better financial
performance.
 It can be considered as a market leader
and well responsible corporate
governance due to ability to change.
 They have good marketing skills and
economise of scale along with
facilitating better financial stability.
 It has a weakness of having heavy
reliance on technological aspects.
 The TUI Group has capacity led
volume reductions backfire which may
create problem in operations.
 The have problem of diverse portfolio
and potential risk in context of cost of
financing (Shermon and Gilmour,
2016).
Opportunities Threats
 The TUI Group has an opportunity of
expand low cost airlines or form
alliances due to management skills.
 They have another beneficial chance of
doing investments for gaining desired
benefits.
 They has an opportunity of market
specific targetting including ecotourism
and medical tourism.
 The TUI Group has a threat of climate
change, hedging and rated exchange
which is not favourable for them.
 It includes geopolitical, natural
catastrophes or pandemic and supply
chain of product failure.
 They aviation cost flow fund of capital
cost and declines in market share.
 It involves decline and impact of
consumer demand as well as capacity
commitment.
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PESTLE analysis of TUI Group
Political factor – This can be described as political stability and government rules which
are required to be considered by organisations while making decisions regarding operations
activities to fulfil set goals and objectives. It is necessary for TUI Group to determine regulations
and political atmosphere of particular place in order to conduct operations properly.
Economic factor – The economic factor consist taxation, inflation, interest rate and
growth rate which are responsible for analysing profitability of organisation. It includes that
increased inflation can increase overall cost of production which reduce profits of business
(Howard, 2017). However, the TUI Group should examine these factors in order to make an
effective plan for conducting operations for maintaining the profitably of business.
Social factor – This can be explained as lifestyle of people and cultural & social norms
which are required to focussed by business concerns while producing goods & services to fulfil
actual desires of customers. In context of TUI Group, they should consider societal regulations
and make sure that any step of brand will harm individuals' cultural beliefs as it may create major
societal problem.
Technological factor – The technological factor refers to utilisation of advanced
technical equipments, machines and applications in order to conduct all the operational activities
in proper way. It is essential for TUI Group to use more effective technological machines and
software in respect of maintaining information of visitors and other data by managing accuracy
of the same.
Legal factor – This can be defined as different types of legal rules & regulations which
are mandatory to be followed by every organisation in terms of running their business properly.
It involves the fact that if a business concern will avoid legislations then they will faced legal
punishment or the licensed can be cancelled (Grasso and et. al., 2017). Moreover, the TUI Group
should remain update with new legislations and their modifications to follow them as that are
helpful to conduct business in correct way.
Environmental factor – This involves the factors which are responsible for harming
natural atmosphere should be focussed by organisations while conducting operational activities.
The TUI Group should use pollution free vehicles and prefer other helpful measures to reduce
environmental problem which facilitate to increase trust of customer and goodwill of brand.
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Impact of different factors on business
There are different types of factors which are responsible for affecting operational
activities and procedures of an organisation. It is necessary to determine these components and
examine them for making correct decision making of operations accordingly. However, the TUI
group should determine such compo Business health check refers to conduct overall assessments
of the critical elements of particular business in current circumstances and analyse their impacts
on operational activities. In addition to this, the strength and opportunities should be identified
by given organisations and utilise them for increasing effectiveness of facilities in order to gain
customer satisfaction and loyalty. Meanwhile, it consist to examine weaknesses and threats of
TUI group in respect of making strategies to overcome with them which facilitate improve
quality of services in travel & tourism. Moreover, it is necessary for organisation to evaluate
actual needs of customers along with analysing modifications in the same for producing desired
facilities to make them loyal for brand (Ojala and Tenold, 2017). Furthermore, it is important for
given company to utilise strengths and opportunities in order to conduct quality management for
improving effectiveness of services which helps to retain customers with brand for a long time.
On the other hand, marketing methods can be conducted to increase awareness of among
people about TUI Group and its services by considering social and cultural norms of particular
geographical area. It is significant to focus on external factor of business environment like
political, economic, social, technological, legal and environmental while conducting marketing
events. However, they should make sure that any kind of marketing event will not harm
anybody's cultural beliefs and prefer things as per actual trends of customer choice. Apart from
this, it has been analysed that actions of competitors are required to be determined and establish
effective strategies to attract new customer along with retaining the current ones for making
more more efficient in market (Borchers, Chang and Gershwin, 2017). It will provide support to
gain competitive advantage along with increasing profit share of TUI Group in market area.
Review of effectiveness of the business
The effectiveness of business depends upon overall products or services and overall
efforts of employees to maintain appropriate ratio of productivity as well as profitability. It
includes the production of goods & services, marketing activities, sales, finance and overall
performance of an organisation which facilitate to gain better profits in market. However, it is
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necessary for a business concern to focus on each and every aspects of business in terms of
running business in correct way.
Product or services – The given company provides residential services and airlines
facilities for their customer through providing proper package of trips for different tourist places.
It is necessary TUI Group to make desired changes in goods and facilities according to modified
demands of people in order to maintain brand image in market to gain better profit share.
Marketing – This can be described as to conduct promotional activities in respect of
making people aware about brand and its services which encourage customers to buy package
from there for their holidays (Hickman and et. al., 2018). It involves to make people convinced
by feature of products to make them loyal for brand which helps to ensure long term profitability
of TUI Group.
Sales – They have better features in their services and much effectiveness to fulfil actual
need, wants and demands of customer which is favourable to increase sales. It includes to
improve the quality of facilities and products which helps to boots up number of sales which
facilitate to increase the overall profitability of business.
Finance – This involves to gather desired amount of funds for TUI Group in order to
carrying out overall operational activities and procedures. It is necessary to collect sufficient
funds which is essential to improve quality of products and services for completing desires of
customer in proper manner. It will facilitate to attain customer satisfaction and make people loyal
for brand (Green, 2018).
Determination of potential improvements in business
The developmental areas required to be determined by putting efforts in an organisation
for improving effectiveness of operations. It is essential to boost up standards of goods and
services which provide help to make brand more efficient to improve goodwill in market.
However, conducting SWOT analysis is very significant method of determining potential
improvements in business which facilitate to expand business of TUI Group and increase
profitability of the same. In context of TUI Group, it has been analysed that strengths and
opportunities should be utilised for increasing quality of facilities which helps to improve brand
image in market. Meanwhile, it is necessary to make more effective as well as efficient strategies
to overcome with weaknesses and threats in order to improve customer satisfaction regarding
facilities.
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On the other hand, it has been analysed that PESTLE analysis is much favourable to
make accurate decision making to carrying out overall operational activities in correct way. The
TUI Group should analysed political stability while conducting operations and determine
economic factor at the time to collecting resources for completing manufacturing in proper
manner. However, the social norms are much effective to be considered because a small mistake
may create major societal issue due to which sales of organisation get reduced which is
responsible for huge loss of the TUI Group. In addition to this, advanced technology is required
to be adopt by given company in respect of surviving and increasing profitability in present
scenario of digitalisation (Kitchen and Chowhan, 2016). Technology is also essential to make
serving easy and fast which is a need of every customers because time is very precious for
everyone.
Developing a business plan for improving business
The business plan is very important to conduct different activities step by step in respect
of completing the major of tasks of producing desired services and goods. In context of TUI
Group, they are required to focus on certain aspects while making plan of action in order to
conduct operations in correct way.
Resources – The different types of resources includes funds, manpower, electricity,
equipments, machines, raw material and many more. It is necessary for to gather required
resources as per requirements at work place and adopt correct management style for facilitating
maximum output in limited amount of resources.
Financial Management system – The Financial management system is favourable to
manage overall funds which is required to be utilised in various business aspects. It is helpful to
eliminate accounting errors, minimising record keeping redundancy and ensuring compliance
with tax & accounting regulations in TUI Group.
Marketing – The marketing includes promotional activities conducted by TUI Group in
order to promote brand and influence people towards the same. It is helpful to gain favourable
buying decision of customer which facilitate to increase profit share in market (Champney,
2016).
Quality management – The quality management consist to implement effective model
or theory to increase quality of good and services of TUI Group, they can use six sigma, lean
principle and total quality management for increasing customer loyalty towards brand.
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Action planning – The action plan consist specific task, tie horizon and resource
allocation which facilitate to complete particular project on time in prefect manner with better
outcomes.
Risk management – The risk management should be carried out by TUI Group by
following certain steps like identify hazards, assess the risk, control and review the risk control.
It is helpful to avoid problems and gain better outputs through conducting operations.
Conclusion
From the above task, it has been concluded that business health check can be described as
to conduct overall assessments of the critical elements of business in present situation. It consist
to analyse impacts of factors on business by conducting SWOT and PESTEL analysis. However,
it includes effectiveness of business by evaluating Product or services, Marketing, Sales and
Finance of given company.
TASK 2
Introduction
Business Health Check is also referred as existing comprehensive evaluation of crucial
elements of an organisation as it enable management to concentrate over internal and
external driving forces of business environment in order to make corrective course of action
from an accomplishment of firm goal. This report is based on TUI group, world’s leading
tourism company which operate 1600 travel agencies, several airlines, hotels, crusie liners
etc. across the globe. This report covers evaluation of skills of managers and employees and
developing a plan to improve performance. Finally, provide suitable suggestions for selected
company in order to enhance its productivity.
Main Body
Developing staff skill audit plan
In every organisation, employees or staff plays a vital role as they have major contribution
towards an achievement of business goals in an effective and efficient manner within a
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prescribed time limit. For attaining the same, company should take initiative to identify or
determine an ability or potentiality of manpower and based on that they must assign them their
roles and responsibilities that bring high level of satisfaction and strengthen firm proficiency. An
impressive and productive working environment encourage manpower to put their full
contribution towards the attainment of increased level of sales growth and profit margin. Thus, in
order to analyse each personnel performance, there is a tool which help manager to analyse the
current situation of company in order to gain competitive edge. Hence, soft skill audit is regarded
as an integral component which is used to identify the skills or potentiality of an organisation
currently has, and where skill gaps lie in order for an establishment to meet its strategic
objective. Moreover, each individual who works within firm has a unique and dynamic abilities.
So, it is not only important for management to know what each person skill set and their level
rather they can they can evaluate these talent and can find out a way to utilise as part of work
(Ransbotham and et. al., 2017). Therefore, an ultimate goal of conducting staff skill audit to
encourage TUI group to focus on identifying abilities and bolster resources in the areas of key
strategic importance to business. As per reviewing the data, it is obvious that TUI group is
benefitting from technology. Thus, they require managers and employees must have IT skills,
general knowledge of social media and approach situation with an open mind. Here some of the
skill of manager and staff which has been before and during working process in TUI group as
well as those that need development. The below shown table also explains the method of
gathering each skill and how it is transferrable which are as follows:
Skill Summary Confidence Activity to
improve
Transferability Need
Improvement
Customer
service
I can identify
customer
wants and
needs to
provide right
services and
products, to
maximise
customer
4
(confident)
Working as a
tour operator
and face to
face
advertisement
to customer.
Any guests
faced, front line
role such as
receptionist,
waitress and
ride operator.
No
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satisfaction.
Time
management
I can use my
free time to
allocate
needed work
hours and
find a
balance
between
work and
social life.
2 (not very
confident)
University
assignments,
having a lot of
free time to
assign needed
work into.
Any fast paced
environment
role such as
Manager role,
chefs and cooks
and
transportation
managers.
Yes
Technological
knowledge
I can use
Word and
Power point
effectively. I
would need
some
improvement
in using
Edexcel.
However, I
can adapt
easily to new
technology if
necessary.
3 (fairly
confident)
Growing up
with
technology
and advance
method of
trading
products and
services.
Office worker,
self-
employment,
receptionist,
tour operator.
Yes
Financial
Management
I am fully
aware of my
current
outgoings,
incomes and
spending and
3 (fairly
confident)
I took part in
internet
famous
challenging
activity
related to
Any money
involved in jobs
and lifestyle
such as event
management,
hotel managers,
Yes
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