MGBBT1BNE BUSINESS ENVIRONMENT ASSIGNMENT SAMPLE
Module code and Title: MGBBT1BNE BUSINESS ENVIRONMENT ASSIGNMENT SAMPLE
Introduction
Aim of case study
The case study aims to analyse TUI Group and evaluate the corporate structure, with a STEEPLE analysis by inquiry into the Covid-19 attack recovery of the company.
Internal business environment defined
The internal business environment refers to the different manager’s senior employees, tour agents, call attendants, the risk analyst team and the investors associated with internal affairs. TUI Group has a large structure being a company that follows data protection of tourists, letting a large fraction of the United Kingdom (UK) based customers reside in the hotels.
External business environment defined
The external business environment is defined as the forces which directly influence various business operations and activities which eventually lead an organisation to profitability and loss in the long run. The external business environment includes factors such as economic, technological, political, social and demographic which impact the overall business growth and development (Cherunilam, 2021).
Definition of Macro business environment
Macro business environment refers to all the economic factors which impact the business of an organisation and it also denotes a broader economic environment which includes trends in the field of Gross Domestic Product (GDP), inflation rates, monetary policy, fiscal policy and employment rates.
Section 1
Business Overview
TUI Group may be defined as a company that has been specialising in the service of tourism, having a set of different facilities such as European airline services, making tourism a new operation. The key operations of the company may be defined as sustaining a better and positive corporate work culture, having an impressive revenue of €893 million and being listed as one of the most unique companies in the Frankfurt Stock Market (Tuigroup.com 2022). The business type of the company is tourism and service to the onboarding tourists, prohibits bribery and has created a dedicated training program to upskill employees in compliance regularly.
Size of TUI Group
The company of TUI Group has a large number of people supporting the economy, ranging from 1,600 subsidiary agencies and 150 aircraft, letting the amount of business be spread to a massive number. To be more transparent, the company of TUI Group has around 27 million consumers using the service and possessing 16 cruise liners, which is an impressive amount to notice. The annual revenue of the company is €19 billion with a high market share to be listed in the Market of Hanover Stock Exchange, as the company gears up for an experience in more than 180 nations.
Industry and sector of operation
TUI Group operates in the tourism industry and has a count of 400 hotels and more, where the global governance of the company includes a large section of a multi-stakeholder approach (Pouliot and Thérien, 2018). The global governance and diversification process for TUI Group has been based on network marketing management, where the operation has been extended after collaborating with the UK-based TUI Travel (Aburumman, 2020).
Indirect and direct competitors
The direct competitors of TUI Group in the UK are Expat Explore Travel, MacBackpackers, Costsaver, British Travel Agents, and Expedia UK while the indirect competitors are those how to offer similar services as tourism, such as McMillan Hotels, Crerar Hotels, Hilton UK and Premier Inn.
The leadership team and organisational structure
Mostly, the satisfaction of the customers and running the policy of not letting any corporate abuse occur has been the great policy of the TUI Group Board of Directors. The Executive Board consists of Sebastian Ebel, David Burling, and Mathias Keep, while the Supervisory board has Dr Dieter Zetsche, Frank Jakobi, Sonja Austermuhle, Christian Biaer and a few more eminent people (Tuigroup.com 2022).
Figure 1: TUI Group organisational structure (Source: Tuigroup.com 2022)
Section 2
The impact of Covid-19 on TUI Group’s internal environment
The outbreak of Covid-19 has negatively impacted the internal environment of the TUI Group to a significant extent where various factors such as members of the organisation, stakeholders, assets of the organisation, organisational culture, organisational structure, human resources and physical as well as technological resources. It may be asserted that soft-computing methods are used for revolutionising modern businesses in today’s digitally advanced business era (Dima and D’Ascenzo, 2021).
The pandemic of Covid-19 has impacted all these above-mentioned aspects in a profound way where internal communication has been affected severely which has eventually led to an impact on the organisational culture negatively. The pandemic is held responsible for changing the workplace culture and environment of the TUI Group where lack of communication has generated internal issues of trust and transparency.
However, globalisation has changed the business strategies and trade patterns of companies to a great extent and for this purpose, making changes according to the global context becomes necessary (Hamilton and Webster, 2018). The impact of Covid-19 on the internal environment of TUI Group may never be overlooked or neglected for generating impressive outcomes in the upcoming years.
Figure 2: Impact of Covid-19 on the tourism industry (Source: Hamilton and Webster, 2018)
Impact of the UK Government’s recovery plan on TUI Group’s internal environment
The government of the UK has taken various initiatives to recover the businesses associated with the tourism industry and the, for this reason, the government has provided various types of incentives and subsidies to companies such as the TUI Group. It may be stated that the internal business environment of an organisation depends on the financial environment which directly impacts the local or national business strategy of an organisation (Morrison, 2017).
The Government of the UK has taken the initiative to hold meetings with various stakeholders to overcome the issues related to tourism which has helped TUI Group in improving the technologies necessary for improving its organisational culture. The Government of the UK has also taken the initiative of the Youth Mobility Scheme (YMS) for increasing the movement of people from various countries such as Hong Kong, Australia, Canada and New Zealand for improving the levels of cultural exchange which will also promote better tourism experience in the post-pandemic world (GOV.UK. 2021).
Figure 3: Decrease of revenue collection in the tourism sector of the UK (Source: GOV.UK. 2021)
Section 3
Impact of the UK Government’s recovery plan on TUI Group’s micro-environment
The Government of the UK has also taken several steps for restoring the previous glory of tourism in the country and due to this reason, the government has launched digital boost platforms for providing digital support to various companies such as the TUI Group. Moreover, a sustainable approach to tourism improves the overall quality of business of an organisation operating in the tourism sector along with providing better business opportunities (Slocum et al., 2020).
All the recovery plans as laid down by the government have directly impacted the performance and productivity of the TUI Group by improving the bonds with all the stakeholders including the suppliers, customers, shareholders and marketing agents. It may be opined that focusing on various important factors such as employing female business leaders and maintaining an ethical work environment always proves beneficial in increasing the productivity of an organisation (Fang et al., 2020).
The recovery plan of the Government has also helped the TUI Group in improving business relations with the employees and customers as the assistance provided by the government has directly helped in boosting the business of the company.
The impact of Covid-19 on TUI Group’s micro-environment
The outbreak of Covid-19 has impacted every business and the tourism sector is no exception to it where companies such as the TUI Group have confronted issues related to organisational performance and managing the suppliers and customers. On a broader note, restoring a business to its natural environment becomes a challenging task which may be done by making proper strategic decisions (Hoffman and Georg, 2018).
The outbreak of the pandemic has directly impacted the overall business growth and development of TUI Group which has directly impacted the profitability and performance of the firm due to reduced engagement of the employees and the shareholders.
Figure 4: Factors associated with micro-environment (Source: Hoffman and Georg, 2018)
The pandemic has imposed extensive lockdowns in the UK which has severely disrupted the movement of logistics and important goods and materials ultimately leading to failure in maintaining strong communication with the suppliers and vendors. Implementing advanced technologies such as Industry 4.0 provides immense support in improving the quality of business activities and operations (Matt et al., 2021). Covid-19 has imposed a profound impact on the factors related to the micro-environment which has been reflected in the financial performance of the brand.
Section 4
STEEPLE analysis of TUI Group’s macro environment
| Factors | Impact |
| Social | The society of the UK is highly educated and people love to spend leisure time in various indulging activities such as travelling which has provided an advantage in the business expansion of the TUI Group. Firms are required to pay attention to safety protocols, human resources and modern infrastructure for maximizing productivity (Zhenwei et al., 2020) |
| Technological | The UK is a technologically extremely advanced country which provides opportunities for advanced research and development which has impacted TUI Group positively. Developments in the field of technology through advanced research and innovations have helped in growing the business of TUI Group to a significant extent |
| Economical | The UK is an extremely strong country economically and the availability of funds along with the presence of potential investors have also impacted the company positively. The Gross Domestic Product (GDP) of the UK has been growing at a steady rate which ensures better economic support to businesses and it has also proven to be fruitful for the business expansion of TUI Group |
| Environmental | The UK often confronts severe weather conditions where excessive snowfall or storms devastate settlements to a great extent and it has impacted the business of TUI Group negatively. The presence of some Non-Governmental Organisations (NGOs) and their campaigns against harmful business practices sometimes become a cause of concern for the company |
| Political | The UK is a politically stable country where the presence of democracy reduces the level of corruption in the country eventually leading to a better business environment for companies such as TUI Group. The presence of a strong democracy in the UK has directly impacted the growth and development of the TUI Group constructively |
| Legal | The presence of a strict legal system in the UK also assists in providing better working conditions to the employees which ensures better productivity and job satisfaction of the employees. The presence of labour laws, minimum wage laws and workplace safety laws have impacted the business of TUI Group positively |
| Ethical | The country maintains ethical considerations and people belonging to different religions and cultural backgrounds are treated with respect and dignity. The ethical environment provided by the UK has proven beneficial for TUI Group |
Table 1: STEEPLE analysis (Source: Self-created)
Conclusion
From the above discussion, it may be concluded that the breakout of Covid-19 has directly impacted and influenced the overall business performance of TUI Group to a considerable extent and the policies, as well as initiatives adopted by the Government of the UK, have assisted in reducing the challenges.
Additionally, analysing and evaluating different macro and micro environmental factors becomes essential in understanding the overall business of an organisation such as the TUI Group. The STEEPLE analysis has also assisted in understanding the macro environment and the factors associated with it for generating optimised outcomes through business operations and activities of the company.
Recommendations
The following are some of the important recommendations: –
- The TUI Group should make changes in its leadership role and responsibilities for utilising the recovery plans laid down by the government of the UK in the most suitable way
- The management of the TUI Group needs to improve internal communication for sharing all the relevant and important information among all the departments for getting the maximum benefits from the tourism recovery plan
- TUI Group is required to organise frequent meetings with all the stakeholders for increasing awareness levels about the schemes and benefits provided by the government in the tourism recovery scheme.
References
Aburumman, A.H., 2020. The concept of global governance in tourism franchises: a case study of TUI group. Entrepreneurship and Sustainability Issues, 8(2), p.1321.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.Pouliot, V. and Thérien, J.P., 2018. Global governance in practice. Global Policy, 9(2), pp.163-172.
Dima, A.M. and D’Ascenzo, F., 2021. Business Revolution in a Digital Era. Springer.
Fang, S., Goh, C., Roberts, M., Xu, L.C. and Zeufack, A., 2020. Female business leaders, business and cultural environment, and productivity around the world. World Bank Policy Research Working Paper, (9275).
GOV.UK. 2021. The tourism recovery plan, GOV.UK. GOV.UK. Available at: https://www.gov.uk/government/publications/tourism-recovery-plan (Accessed: October 13, 2022).
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University Press.
Hoffman, A.J. and Georg, S., 2018. Business and the natural environment: A research overview. Routledge.
Matt, D.T., Rauch, E. and Riedl, M., 2021. Knowledge transfer and introduction of industry 4.0 in SMEs: A five-step methodology to introduce industry 4.0. In Research Anthology on Cross-Industry Challenges of Industry 4.0 (pp. 275-302). IGI Global.
Morrison, J., 2017. The global business environment: Challenges and responsibilities. Bloomsbury Publishing.
Slocum, S.L., Aidoo, A. and McMahon, K., 2020. The business of sustainable tourism development and management. Routledge.
Tuigroup.com 2022. Tui Group – one of the world’s leading tourism groups (2022) TUI Group – Einer der weltweit führenden Touristikkonzerne. Available at: https://www.tuigroup.com/en-en (Accessed: October 12, 2022).
Zhenwei Qiang, C., Wang, H. and Xu, L.C., 2020. Heterogeneous Effects of the de jure and de facto Business Environment: Findings from Multiple Data Sets on the Business Environment. Colin, Heterogeneous Effects of the De Jure and De Facto Business Environment: Findings from Multiple Data Sets on the Business Environment (January 21, 2020). World Bank Policy Research Working Paper, (9115).
Know more about UniqueSubmission’s other writing services:
