Case Study Report

Module Title: Business Environment

Date of Submission:

Word Count:
Introduction
Many businesses faced bankruptcy due to COVID. Many others were able to remain
viable by modifying and redesigning the business models, strategies, and tactics.

The company’s HR specialises in employee motivation and provides more than the
basic benefits such as free premium holidays at various destinations, etc.

Section 1
 Business overview (e.g., key events, products/services, business type, legal structure)
 Size (e.g., annual revenue, number of employees, scale of operation, market share)
 Sector and industry of operation
 Direct and indirect competitors
 Organisational structure and leadership team.

TUI Group Overview

TUI group is a travel, tour, and leisure based business group that has been leading in
the global tourism industry for over 40 years. TUI stands for Touristik Union
International (Tourism Union International). It was previously known as Preussag AG
until 1997. Because in the same year, the company changed its industry focus and
moved from mining to tourism permanently. It is a public limited company with around
1.78 billion outstanding shares. The company’s headquarter is in Hanover, Germany.
Around 22 million travellers choose the services of TUI group every year.

TUI is a comprehensive travel company that offers scope and synergy via its two major
industry sectors such as the Markets & Airlines and Holiday Experiences. The group
owns a large number of businesses operating in the various segments of the tourism
industry. The business list features 400+ hotels, 1600 travel agencies, 18 cruise ships,
and several hundred inbound agencies in all of the world's top vacation spots. The
company possesses the largest fleet of holiday aircraft in all of Europe along with a
substantial number of European tour operators. The group owns five European airlines
such as TUI Airways, TUI fly Belgium, TUI fly, TUI fly Netherlands and TUI fly Nordic
that travel to 180+ destinations all around the world.

Organisational Structure and Stakeholders

TUI group has a divisional organizational structure whereby each division is managed
and controlled by individual managers. TUI group has about 50,584 workers all around
the globe in its various business areas. TUI group’s workforce is one of the most
diversified workforces in the world. TUI group employees are able to enjoy the best
benefits and employee oriented policies that are also offered by the major companies.
The company’s external stakeholders are the suppliers, vendors, investors, and
distributors.

Recent Revenue

TUI group’s revenue for the first 6 months of 2022 amounted to a whopping $4 billion.
This is a huge marginal improvement over the last year numbers. After facing declines
in the last two years thanks to both COVID and major geo-political developments, TUI
has finally seen improvement sand increases in its profits.

Competitors

Currently TUI group is the market leader in the EU tourism industry. The company’s
direct market competitors include Thomas Cook Tours, GTI, and Kouni. Other than that
Non-EU based major competitors include Fareportal, Expedia Group, Flight Centre
Travel Group, CWT, Booking Holdings, and American Express Global Business Travel.

Section 2 (400 words) 380

This section should interpret the information provided by including the following (but not
limited to):
  The impacts of the Covid-19 Pandemic on TUI Group’s internal environment.
 The impacts of the UK government’s recovery plan on TUI Group’s internal environment.

The COVID-19 pandemic has been one of the most impactful adversaries that occurred
during the last few decades. Due to the outbreak of the coronavirus, many people all
around the globe suffered physically, financially, and emotionally. Among the industries
that faced decline, the tourism industry is one of the sectors that faced with substantial
problems. Companies changed managerial structure, and internal-external environment
in response to the COVID-19 pandemic.

The components of an organisation's internal environment include its business strategy,

policies, goals, workers, administration, core principles, organisational structure, and
organisational values. The internal environment of TUI group is made of components
such as the value system, corporate culture, organisational structure, human resources,
internal capabilities, and business strategies. The COVID-19 crisis caused the overall
internal management to be disrupted as many of the employees fell sick due to the
virus. The regulatory changes applied by the nations caused policies and strategies to
be faced with problems. Government imposition of restrictions on travel and tour as well
as business operations resulted in a disorientation of internal management within the
internal business environment of TUI group.

In response to the COVID-19 pandemic, the UK government in line with many other
governments imposed lockdowns, ban on social gatherings, and rules or various social
and private organisations.

Value Proposition: The offerings of the company were enhanced with the commitment
to safety of employee and customers for infections.

Operations: Many operations were halted due to high level of restriction in the first two
phases of UK recovery plan.

Structure: All the divisions and sub divisions were taken online and the organisational
structure and policies were redefined to match various situations.
HRM: The HRM developed various policies and plans for the employee safety,
healthcare, and support. As the lockdowns started to get turned off during the third
stage, the HRM of every company (TUI being no exclusion) had to ensure a highly safe
and hygienic workplace. A high level of priority was given to both health safety of the
workers.

Learnings: The adverse impact made the company’s each division suffer with
employee losses to COVID-19 deaths and various other modifications. The overall
impact was highly adverse but TUI group was able to stand back as the times changed.
The company’s internal environment went through changes and now it is stronger,
impeccable, and stable.

Section 3 (400 words) 380

This section should interpret the information provided by including the following (but not
limited to):
 The impacts of the UK government’s recovery plan on TUI Group’s micro-environment
 The impacts of the Covid-19 Pandemic on TUI Group’s micro-environment.

The micro environment is a group of variables or forces that are highly related to an
organisation and can have a marginal impact on its performance, strategies, and regular
operations. These factors are mostly controllable by the particular business. The micro
environment elements are many and TUI group micro environment elements are
customers, employees, price sensitivity, competition, suppliers, and intermediaries.
But macro environmental elements are hardly influenced by company actions and
tactics. Instaed the business creates response strategies to move along with