TUI Travel PLC: Management Model Theories and PESTLE Analysis

This report provides an analysis of TUI Travel PLC, a British leisure travel group, focusing on management models and PESTLE analysis. It explores management model theories such as scientific management and human relations management, detailing their proponents and characteristics in the context of TUI's operations. The report further discusses three factors from the PESTLE analysis—social, technological, and environmental—explaining their impact on TUI's business. The social factor examines the influence of social media trends on tourism, while the technological factor considers advancements in transportation and information availability. The environmental factor highlights the impact of pollution and tourism on ecological aspects, providing a comprehensive overview of the external factors affecting TUI Travel PLC's strategic decision-making and operational management. Desklib provides access to this report along with a vast collection of study resources including past papers and solved assignments.

Foundation of
Business and Tourism

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Management model theories in relation to TUI travel PLC with proponents and characteristics...1
Management model theory................................................................................................1
Scientific management theory................................................................................................2
Human relation management theory......................................................................................3
TASK 2 ...........................................................................................................................................4
Discussion of three factors in PESTLE analysis with examples of company's operation...............4
Pestle analysis ........................................................................................................................4
Social factor............................................................................................................................5
Technological factor...............................................................................................................5
Environment factor.................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Foundation of business and tourism is provision of facilities and services to millions of
people for attending meetings, exhibitions, travel packages, business events and other.
( SNogueira, Gomes, and Au-Yong-Oliveira, 2020)It helps to provide products and services of
different types of tourist needs & requirements during touring. In this report chosen company is
TUI travel PLC is a British leisure travel group, founded in 2007. There will be a discussion of
different management model theories in relation with TUI travel PLC with mention of its
proponents and unique characteristics of management model theory. At last there will be macro
environment analysis of company operation using PESTLE analysis.
MAIN BODY
TASK 1
Management model theories in relation to TUI travel PLC with proponents
and characteristics.
Management model theory
A management model is a choices by organisation executive regarding company's
objectives, motivations efforts, allocation of resources and coordination activities. Management
model theories combines a collection of different ideas recommended for general rule and
regulations to manage organisation.(Astudillo-Rodas and Riccucci, 2021) Management theories
includes tools for framework and guidelines to implement on modern enterprise, also to
motivation of employees helps them to perform highest of their ability for success of company.
There are various types of management theories for workforce and organisation culture
such as, scientific management theory, system management theory, contingency management
theory, theory x and theory y, administrative management theory, bureaucratic management
theory and human relation theory . In context to TUI travel PLC management model theories
helps to provide a guidelines and framework for management operation and also provide a
method to motivate employees for advantages of company growth and success. Management
model theory for TUI travel PLC can be scientific management theory and human relation
management theory with their proponents and characteristics.
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Scientific management theory
Scientific management theory focus on emphasizing on simplifying tasks of management
to increase productivity, it frames strategy on standardizing workplace rules and regulation with
guidelines to help motivation of employees by providing job security and fulfil needs &
requirements of employees. (Saba and et.al., 2021)It helps on collaboration between employees
and employers growth into teamwork with efficiently to achieve goals and objectives of
company. Scientific management implies on application of science into management of jobs in
company to increase efficiency and productivity of organisation, it includes identifying efficient
methods of training of new employees, proper allotment of work and duties, scientific selection
and methods of production to achieve cooperation between employees and management.
In context to TUI travel PLC as tourism industry it becomes necessary for company to
maintain coordination between their and employees and management to increase productivity
efficiently. Scientific management theory will help organisation to achieve gaols and objectives,
by providing a proper motivation to employees to bring best potentiality of them to achieve
success for company. (Beard-Gunter, Ellis and Found , 2019)Organisation need to apply
scientific management theories into management process of company for success in long term
process by increasing efficiency through applying science into operation of TUI travel PLC for
profits.
Proponent and characteristics of scientific management theory:
American mechanical engineer Frederick Taylor pioneered the scientific management
theory.
Characteristics of scientific management
 Mental change:
Scientific management bring a complete change in mind set of management and
employees of organisation, aiming for better efficiently work of production rather then
completing work for profits.
 Systematic approach:
Scientific management provides a systematic approach in management for
creating a framework of workforce in systematic manner to ensure all activities completed in
proper order for more efficiently.
 Improves efficiency:
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Scientific management focus on increasing efficiency of employees by conducting
various studies in management such as motion study, fatigue study and time study, It is a tool to
enhance efficient for benefit of company.
 Useful for large organisation:
Scientific management is quite expensive for implement in company, hence it
more useful in large companies. Scientific theory has huge impact on operation on management
it is expensive for small companies to implement.
 Brings specialisation:
Scientific management helps to divide work in small teams and allot employees
according to the specialisation of them into group of teams which helps each team to perform in
less time with efficiency and increase productivity.
Human relation management theory
Human relation management theory premise organisation psychology of employees for
productivity and motivation increase through positive social bonds in workplace by identifying
individual needs.(Boxall and Huo, 2019) It helps to design improvements in productivity by
foundation on human relation movement, it focus on changing work environment for employees.
Human relation theory helps to give motivation on employees by giving personal attention and
considering better working condition which provides efficiency and growth to achieve gaols of
personal and company.
Human relation management focus on individual needs and behaviours, it take
interpersonal approach of managing employees with formal & informal elements. Formal
element includes structure of organisation, in informal elements it includes interaction between
individual and management. It helps to create satisfaction and motivation of every individual in
organisation. In context to TUI travel PLC company can implement human relation theory into
management for improving work efficiency of workers through motivation and providing needs
and requirements of employees to achieve better performance which directly increase
productivity of company.
Proponents and characteristics of human relation management theory:
Human relation management theory is created by Elton Mayo.
Characteristics of human relation theory
 Satisfaction of needs in employees:
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Human relation theory emphasis on satisfying needs of employees in enterprise,
by fulfilling economic,(van Kemenade and Hardjono, 2018) psychological and social needs of
individuals it can impact on increasing the morale and productivity of employees.
 Social aspects:
Human relation theory helps to satisfy social accommodates of employees in
workplace assure increase in productivity of employees towards work which led to increase
management and success of company.
 Willingness of work:
Human relation implies principle of objectives to secure willingness of
organisation in cooperation of employees, the efforts from management motivate employee to
willing work in organisation to achieve target in better work environment.
 Increase in productivity:
Human relation management helps in reusing productivity of employees towards
enterprise through this approach, with the efforts of providing satisfaction to employees helps to
increase morale which led to increase in productivity of operation.
TASK 2
Discussion of three factors in PESTLE analysis with examples of company's
operation.
Pestle analysis
Pestle analysis define study to key external factors that affect organisation's operation,
identify scenarios for company for guidelines in making strategic decision for operation. It is a
tool to identify macro environment factors affecting organisation, analysis advantages and
disadvantages of company's operations. (Anwar and et.al., 2020)Pestle analysis helps to identify
political, economic, social, technological and environmental factors that cab affect operation of
business and helps to create framework according to situation that can affect in future growth of
company. In context to TUI travel PLC as tourism industry pestle analysis will help to identify
any external factor that can affect company's operation management in current or future aspects
so company can adapt strategy by considering situation for better avoid such problems.
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Social factor
Social factor focus on social environment and identifying new trends that helps marketers
to understand consumers needs and social trends, it include changes in family demographic,
cultural trends, educational level, attitude changes and lifestyles changes.(Cunliffe, 2021) Social
pressure Travelling is fashionable with social media every individual have a constant pressure
through online presence, as they want to impress other on social media. Social media popularity
causing people to travel in different places, which cause direct impact on tourism industry in
positive aspect. It is causing positive impact but not sustainable growth as if people moved on
from social media it can cause affects on company.
Trend aspects Tourism is becoming more a trend in young generation because of social
media aspects while tourism consist of wanderlust and relaxation packages for customers but in
current trend it become more of expressing social class and showing off for people. It put peer
pressure on people and also on company to boost growth in tourism industry. Social factor can
affect company operation system as organisation focus on giving luxury comfort to customers
but with change in social trends company needs to focus on providing packages according to new
trends on social media which affect operation of management. (Shujahat and et.al., 2019)In
context to TUI travel PLC company needs to consider social media and new trends to create
packages according to latest trends constantly, as trends changes constantly which sometimes
become difficult for management to follow and provide information to operation employees. To
avoid social factor in long term process company neds to consider social terms and provides
places to customers according to the needs and social fame.
Technological factor
Technological factor refers to constant change in technology innovation and
development that can affect company, it include changes in digital, automation, mobile, research
and development. It focus on development into digital technology to consider in manufacturing
and logistics of company. (Abrantes, Brunnschweiler and Barnett, 2018)Technology factor
changes in technology can affect company operation management functions, by market
favourable or unfavourable elements. There are better transportation technology available in
market which influence tourism industry as constant development in transport. Travellers have
better options in transportation especially in airlines cost cheaper and faster, with new
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development in technology buses, trains and air-planes are more comfortable than before with
new feature installed such as, charging ports and free Wi-Fi for customers.
Availability of information people has smart devices which allows them to get to any
information related to travelling and booking packages online through internet, there are travel
blogs available online through which people get information about place without going on travel
agent which cause affect on travel industry. New technology development in software and
equipments it helps companies to develop there own operation method for better performance to
provide services to their customers. In context to TUI travel PLC company can consider new
technology into operation management to provide best services to customers with better amities
for comfort to people, since there are constant changes in technology sometimes it becomes
difficult to adapt every possible technology in operation management of company so
organisation needs to focus on provides best possible services with comfort to customers.
Environment factor
Environmental factors has huge impact on tourism industry as there are various factors
with different environment of every place. Environmental factors cause influence by surrounding
environment which impact ecological aspects, it is becoming central organisation to conduct
business. It include climate, recycling procedures, waste disposal, carbon footprints and
sustainability, it also includes business environmental analysis that are climate, weather, global
changes in climate, environment offsets and geographical locations. (Panagiotopoulou and
Stratigea, 2021)Transport pollution cause huge impact on company through pollutions created by
buses, trains and many more, it realise carbon dioxide in environment to contribution on global
warming and other environment factors. Tourist negligence also cause environment pollution
which led to affect on company as there tourism on local level, as people are less respectful
towards nature and historic destination places which cause contamination in environment by
discarding bottles in countryside with regular use of shampoo in lakes causing direct affect on
tourism industry.
Humans are neglecting lot of things in environment which cause rise in pollution level by
destroying beaches and coral reefs , as increasing numbers of tourist across the world
government implement rules against tourism which affect company. (Vanegas-Cantarero and
et.al., 2022)In context to TUI travel PLC environment factor can cause impact on company as
tourist visit places and destroy property which cause pollution in environment and led to directly
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affect on brand image which affect profits of organisation. To avoid such problems company
should implement rules and regulation with framework of guidelines for customers which they
needs to follow during their travelling experience for better of environment, company can also
reduce use of carbon footprint in operation management to saving environment from global
warming.
CONCLUSION
From the above report it concluded that TUI travel PLC has various management model
theories through which company can perform better performance level of employees and also for
organisation. A suitable management for company are scientific management theory which helps
in systematic operation system in management to enhance performance of employee to achieve
goals and objectives, the another theory is human relation though which it helps to coordinate
better relation between employees and organisation for achieving goals of company and also of
individual. At last a pestle analysis on social, technological and environmental factors that
impacts company success.
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REFERENCES
Books and Journals
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Astudillo-Rodas, M. and Riccucci, N.M., 2021. Personnel management: improving employee
and organizational performance. Handbook of Theories of Public Administration and
Management.
Beard-Gunter, A., Ellis, D.G. and Found, P.A., 2019. TQM, games design and the implications
of integration in Industry 4.0 systems. International journal of quality and service
sciences.
Boxall, P. and Huo, M.L., 2019. The theory of high-performance work systems. Elgar
introduction to theories of human resources and employment relations.
Cunliffe, A.L., 2021. A very short, fairly interesting and reasonably cheap book about
management. A Very Short, Fairly Interesting and Reasonably Cheap Book about
Management, pp.1-224.
Nogueira, A.F., Gomes, R. and Au-Yong-Oliveira, M., 2020. Inovação Tecnológica e Marketing
e o Caso da Falência da Thomas Cook. Revista Ibérica de Sistemas e Tecnologias de
Informação, (E36), pp.1-13.
Panagiotopoulou, M. and Stratigea, A., 2021, September. Strategic Planning and Web-Based
Community Engagement in Small Inner Towns: Case Study Municipality of Nemea–
Greece. In International Conference on Computational Science and Its
Applications (pp. 519-534). Springer, Cham.
Saba, D. and et.al., 2021. Energy management based on Internet of Things. In Recent Advances
in Technology Acceptance Models and Theories (pp. 349-372). Springer, Cham.
Shujahat, M and et.al., 2019. Translating the impact of knowledge management processes into
knowledge-based innovation: The neglected and mediating role of knowledge-worker
productivity. Journal of Business Research, 94, pp.442-450.
van Kemenade, E. and Hardjono, T.W., 2018. Twenty-first century total quality management:
the emergence paradigm. The TQM Journal.
Vanegas-Cantarero, M.M. and et.al., 2022. Beyond LCOE: A multi-criteria evaluation
framework for offshore renewable energy projects. Renewable and Sustainable Energy
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