TUI: ACHIEVING LEADERSHIP IN THE EUROPEAN TOURISM INDUSTRY



TUI: Achieving Leadership in the European Tourism Industry.

TUI: achieving leadership in the European tourism industry.

Introduction

An analysis of the macro environment is crucial in determining the factors which have a direct impact and/or might influence the strategic direction of an organisation. A number of different concepts can be used to analyse the external macro environment in an attempt to identify those factors, which might have an impact upon the organisation, both in terms of being a threat or an opportunity. The following are a list of book chapters and articles that introduce and discuss the various approaches to analysing the external environment.

TUI: achieving leadership in the European tourism industry.

TUI AG (TUI) is a German based listed company engaged in the tourism and shipping sectors. The company's core activities are in the tourism business, focusing mainly on the markets of Central, Northern and Western Europe. The company is headquartered in Hanover, Germany and employs about 54,000 people. The company recorded revenues of E20,514.6 million during the fiscal year ended December 2006, an increase of 12.7% over 2005. The operating loss of the company was E736.1 million during fiscal year 2006, as compared to an operating profit of E386.9 million in 2005. The net loss was E893.3 million in fiscal year 2006, as compared to a net profit of E458 million in 2005.

Q.1) Critically evaluate the environmental challenges that TUI faces by applying PEST (or PESTEL) and Porter's five forces model

The analysis of the immediate competitive environment is important for understanding the strengths and weaknesses of the competition and the organisation's relative position in the industry. It is upon this basis that the organisation can then go on to formulate strategies that enable a strategic advantage to be gained over competitors. A number of concepts can be used to analyse the competitive environment and these are embedded within the following resources.

An understanding of stakeholder needs and expectations are paramount in the development, implementation and success of an organisation's strategy. It is therefore important to analyse the power and interest stakeholders may have over an organisation. The following resources provide an insight into the analysis and application of concepts for analysing stakeholder power and influence.

The formulation of the organisational vision, mission, aims and objectives are crucial for the firm in having a clear strategic direction. However, the composition and content of the vision, mission, aims and objectives is open to interpretation. The following list of resources discusses the purpose of the vision, mission, aims and objectives whilst also illustrating how they can be formulated.

In contrast to analysing the external micro and macro environment, the resource-based view (RBV) seeks to explore the internal resources of an organisation and how these can be leveraged to gain a competitive advantage. An analysis of an organisation's resources can include its financial, physical, human, intellectual and reputational resources. In the deployment of these resources, it is also important to understand the competences and core competences of an ...