BUSINESS ENVIRONMENT

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 Table of Contents
Introduction................................................................................................................................3

Section 1.....................................................................................................................................3

Section 2.....................................................................................................................................5

The impacts of the Covid-19 Pandemic on TUI Group and its internal environment...........5

The impacts of the UK government’s recovery plan on TUI Group:.....................................6

Section 3.....................................................................................................................................7

The impacts of the UK government’s recovery plan on TUI Group’s micro-environment...7

The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment:......................8

Section 4.....................................................................................................................................9

TUI group’s Macro Business environment:...........................................................................9

Conclusion................................................................................................................................10

Recommendation..................................................................................................................11

Reference..................................................................................................................................11

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Introduction

A brief explanation of the aim of the case study

The study of Business Environment will provide a detailed analysis of financial, structural,
technological, social, political and ethics of the company. Business Environment is a prime
concern for the growth of any company. It creates a dynamic relationship between the
organization, employees, stakeholders, customers etc.

A definition of the internal business environment

Internal business environment consists of both managerial ethics and also the behavior of the
employees. Some internal factors influence only the managers, some also draw impact over
the whole organization including their employees. The factors of Internal business
environment are culture, objectives of the company, management structure, structure of the
company, human resources, technology etc.

A definition of the micro business environment

There are two components of an external business environment- micro business environment
and macro business environment. Micro elements which consist of suppliers, customers,
public, direct competitors, market intermediaries etc. Those who directly influence the
company.

A definition of the macro business environment

Macro environment including wider sections which generally influence any company like the
economic environment, government policy, political environment, legal environment,
technological upgradation, socio-cultural environment etc. So both internal and external
factors help a company to upgrade the entire organizational environment entirely.

Section 1

TUI group is one of the greatest tourism groups in the world. Previously it was known as
Hapag Touristik Union of Preussag and launched in the year 1997. It is mainly a UK based

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company but working together with almost 1600 travel agencies including a famous online
portal, 150 aircraft along with 5 airlines, 400 leading hotels and 16 cruises. It has holiday
destinations in almost all the famous places around the globe. The website of TUI Group
(tuigroup, 2022). TUI is a sustainable company which has led the tourism industry over the
past 20 years. TUI consists of 70000 employees all over the world. The turnover is almost
€19bn and operating results almost €893mio. Also the share of TUI Group listed in the
Frankfurt Stock Exchange and Hanover Stock Exchange. TUI has to always face some direct
and indirect competitors. Some companies like HIS, Transat, Holidaybreak, Dart Group,
Sealink Travel group and Norwegian Cruise Line are direct competitors for the TUI Group
and there are many organizations who not directly influenced the company but indirectly.
There are some indirect competitors of this company such as the management companies
from Hotelbeds which are also influenced by the role strategies of TUI group. TUI committed
to strictly maintain the integrity and ethics of the company. TUI is the world's largest tourism
company. After continuous success and achievement, the company must evaluate how they
achieve their success (Fritz Joussen, 2022).

TUI Groups offer awareness campaigns with training throughout the year including
corruption, protection of data etc. CEO Fritz Joussen is the head of the TUI Group. The TUI
Group also encourages their employees that they should maintain the reputation of the
company. The integrity and ethnicity of a large company like TUI broadly depend on the
employees. Basically, the TUI Group follows an open and inclusive leadership strategy who
tries to understand the voice of employees and maintain employee engagement for better
performance TUI Group, 2022. The hospitality of the customer and doubtless service only
can increase the revenue of the company. The strong code of conduct and legal framework
are the prime factors of growth and development of TUI Group. After the merger of TUI AG
and TUI Travel PLC, it focuses on an integrity business plan all over the globe. The Deputy
Chief Executive and managing Director fully involved to design the new structure and
creative ideas TUI Group, 2022.

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 Figure 1: Organisation Structure of TUI Group

(Source: TUI Group, 2022)

Section 2

The impacts of the Covid-19 Pandemic on TUI Group and its internal
environment

The pandemic definitely hit the tourism sector nothing like anything. The COVID 19 hit a
pause button in the TUI Group’s business (Friedrich Joussen, 2021). COVID 19 leads to a
huge cancellation of hotels, booking in tourist spots. Customer demand for the money back
and TUI has to refund all the pre-booking amounts. The European destination also become
limited during the time of both waves of pandemic like Greece Portugal. The internal
environment of the TUI group is also facing active performances during covid-19. This
resulted in the decline of financial revenues for the company significantly. It has also affected
the company employees in many ways. The restricted health policy during the pandemic
ruins the growth of the travel and tourism sector all over the world. Mid of the 2021 an
improved situation came and TUI Group started its business by ensuring a completely new
way, where safety is the key word for all travellers. After the traumatic years the traveller
also started to think for travel by holding the hand of TUI Group (assets.publishing.service,
2022). After the vaccination it became a little bit easier to convince the people for a tour.
COVID negative certificate, vaccination certificate of all staffs and tourist is essential for
travel. TUI Group also launched some campaigns through social media for the safety of

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people during the pandemic period. Proper sanitization, cleanliness of hotel rooms, and
vehicles is another moto of TUI Group during the post COVID era TUI Group, 2022.

Figure 2: Oxford Economics forecasts, published alongside the Tourism Recovery Plan

(Source: Recovery Plan)

The impacts of the UK government’s recovery plan on TUI Group:

Also the government policy acts like a catalyst for the tours and travels after the pandemic.
The travel and tourism sector contributed 6.7% of GDP in UK and Covid 19 impacted the
sector heavily during the period of 2020 and 2021 (UK Government, 2021). The UK
Government started a Tourism Recovery Plan 2021 (assets.publishing.service, 2022). Here
the government aided 25 billion pounds along with a lumpsum amount of loans, and tax
breaks to rejuvenate the tourism sector. In this way the government is also trying to invest in

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different tourism products to bring it back into previous condition . The UK government
provide an economic support to this sectors which hits the government budget massively. But
the push from the government plays a key role for TUI Group for starting their business again
after the pandemic. The UK government helps to become sustainable, dynamic and growing
tourism and encourage the overnight domestic trips, international trips and sustainable
tourism (TUI Group, 2022).

Section 3

The impacts of the UK government’s recovery plan on TUI Group’s micro-

environment

Micro environment which directly connects with the organization, which directly influences
the business fundamentals of the company. These factors will have an impact over the day to
day activities of the company. In the post COVID 19 era the UK government provided
various plans for recovery of the companies including TUI Groups which influenced the
micro-environment of the company. The UK government encouraged the TUI Group to
recover their worldwide position. The Tourism Recovery Plan 2021 is the important step
which the UK government taken for the tourism sector (Ons, 2022.). The UK government
started opening tourist spots slowly and safely and also social distance keeping in mind. So
the public started visiting those places by holding the hand of TUI Groups. The government
started publishing a Global Travel Taskforce Report which insists the tourists have safe and
secure travel. The UK government also provides a relaxation over the VAT which helps TUI
Group financially. The support of the UK government suppressed the competitors of the TUI
Group to some extent. The UK government launched an NHS app for outbound traveling
which keeps the reformation regarding the vaccination. There are only few companies like
TUI Group where employees and stakeholders are so experienced to deal with crisis
(Friedrich Joussen, 2021)

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 Figure: Motivators of Visit Britain

(Source: Tourism Recovery Plan)

The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment:

The Covid-19 spread a very negative impact all over the world. TUI Group also faced a bad
time during the pandemic time. The micro environment which consists of the day to day
working process of the company hampers totally. The company mostly faces the financial
loss as they have to refund all the pre booking amount to the customers. The business was
totally paused during the lockdown time. The agencies which tied up with TUI Group also
face the same critical situation. The hotels, airline which somehow depend on the TUI Group
face the same situation. The marketing partners of the TUI Group could not promote any of
their advertisements because the tourist spots were closed. The competitors all over the world
try to recover themselves (TUI Group, 2022). The TUI Group also had to face the
competitors during the pandemic era. Competitors provided attractive discount, innovative
business ideas to attract customers. So TUI Group also had to face all of them crucially. After
the pandemic the people also avoid travel because of a fear of pandemic and lockdown. So

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convincing the people to travel again and assure safety is another important implementation
of the TUI Group. TUI want to get back their economic strength and TUI will (Friedrich
Joussen, 2021).

Section 4

TUI group’s Macro Business environment:

The STEEPLE which shows the social, technological, economic, environmental, political
legal and ethical impact of the TUI Group.

Social factors:

The social factors of TUI Group including the market research depending on the current
situation like post pandemic world. Specially in tourism sector in the UK, the social aspect is
an important aspect as the company has to keep connected with different culture and different
society even from different foreign countries. The social factors like age, sex, lifestyle also
important for TUI Group because the tourist depends on these factors.

Technological Factors

The technological upgradation of TUI Group is important. Technology should be advanced

up to the mark in UK. The proper technological support to the tourist can increase the
reputation of TUI Group. Proper technology can eliminate the external competitors.

Economic Factors

A part of the economy of UK depends on the tourist and business from them. The rate of the
hotel, vehicle, flight should be maintain by balancing both of the sides company as well as
the tourist. After facing the huge loss in the time of pandemic the TUI Group should remodel
their economical plans and draw new updated plan which increase the growth and stability of
the company. The sectors related with holiday has a chance for huge growth (Friedrich
Joussen, 2022).

Environmental Factors

The environment of the company depends of both internal and external factors. Proper
environment of a company can increase the success rate of the company. As TUI Group is a

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tourism sector so it somehow depends on the external environment. Because the tourist
attracts by the good environmental approach of the tourism company.

Political Factors

Different types of government policies help TUI Group for further growth. The political
factors of UK also related with TUI Groups for further extension. But political factors also
push the company for further development and achieve the pick of the industry. TUI Group
also deal with foreign political factors during the international trips.

Legal Factors

Legal factors consist of the different legal complications of the company. It is important to
maintain legal matters to avoid any serious legal problem. The TUI Group maintain their
legal matter with efficiency with the country UK. TUI Groups also deal with foreign tourist
and foreign government policies so they has to handle all the legal matters very sensitively.

Ethical Factors

Every company should has a business ethics which gives impact over the society directly.
TUI Group also maintain their corporate ethics and they set specific ethics for their
employees as well. The ethics also boost the business impact of the company.

Conclusion

The TUI Group is one of the leading companies in the tourism sectors. Already it is a reputed
company in the UK. The internal environment of the company should upgrade day by day
which easily influence the growth and development of the company. TUI Groups should keep
their eyes over the value system, the vision, mission and objectives of the company. It also
try to reboot the organisational structure properly. Every company has a corporate culture
which also follow by the TUI Group. The technologies also should be upgraded by the
company. Mostly the human resources of the TUI Group should be proper for achieving the
goal. Also the macro and micro external environment of the company influence for further
development. Micro factors which relate day to day views of the company like customers,
shareholders, agents etc. Macro factors including political factors, ethical factors, financial
factors etc. All are the factors behind the achievement of TUI Group.

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Recommendation

The UK government helps the tourism after the pandemic provide the various government
policies like Tourism Recovery Plan 2021, Global Travel Taskforce Report, NHS app. UK
government also decrease the amount of VAT provided by the tourism company. So the TUI
Group should grab all the good opportunities given by government and use those subsidy and
discount properly. UK government also signed many MOU with foreign countries for better
traveling which also helps the TUI Group because it has many foreign trips. So the UK
government plays a key role for the growth and development of the TUI Group.

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