The report is on the Tour operator Tui

Your individual report must address the following:

1) Critically evaluate your organisations business level generic strategies.

Theories about generic strategy at the business level address the issue of breadth of scope of
the product or service offer (broad/mass market or narrow/niche) and the issue of competitive
advantage (cost leadership or differentiation). Show a connection between the activities of
your organisation and generic strategy theory. Reflect on whether the company is playing
the same game or a different game to its competitors.

Say how Tui markets itself as a broad market or narrow niche market

How they gain competitor advantages portars generic strategies - explaining where and
why the business is in one particular section.

How the business compares to its competitors . Just compare to Thomas Cook
http://www.scribd.com/doc/118320181/TUI-Business-Strategy - page two explains the
differences between the two companies.

This section should look to be around 500 words

2) Identify a number of different directions of strategic development which might be appropriate
for the organisation and analyse methods which might be suitable for adopting each direction.

Classic theory proposes that organisations follow directions (the where) which can be
regarded as being either market led or product led or some combination of both. There is also
to be found in academic literature a typology of methods (the how) by which they pursue
these directions. Using these constructs, discuss the developments which your organisation
is undertaking or perhaps could undertake across a range of different directions.

Select 3 possible approaches Tui could take in the future to improve the business.

- Specific student travelling aim at students looking to travel. With the numbers of
students rising and students. With students now looking for a more exotic holiday
compared to the outdated 18-30s holiday to Malia etc. South East Asia is the holiday of
choice with students wanting to go travelling but really only on week holiday in their
summer holiday. This could be classed as market development as its still using the same
product but aiming it at new customers. Organic growth

- Holiday packages for over 65, the highest proportion of the population over 65 and this
age group with the most disposable income they are the perfect target market. As the
majority are retired great package deals can be made in out of season time as they have no
young children or work commitments. Organic growth or acquisition

- A possible tourism innovation for Tui could be the idea of a hop on hop off style bus pass
around Europe. Similar to that of InterRail. Although this would be able to reach more
countries over a larger area at a fraction of the cost, appealing to people on a budget and
travellers. This idea would come under diversification. this could be completed with a
alliances or joint venture.

1. Use ansoffs matrix to explain what section each approach fits into and the risks each
section has.

2. Each idea must also explained how it could be completed by either;
Organic Strategic alliances and Joint VenturesIntegration (MT) Acquisition (MT)
600 words

3) Select any one (and only one) of the strategic development options you analysed in element 2)
above and evaluate its merits using established evaluation criteria.

Take one of the potential developments you outlined and put it under the microscope by
testing it against a set of criteria. These criteria should not be ones that you have devised
yourself but ones which have some greater validity by having been articulated and
established in academic literature. Be sure to cite the authorship or origins of the criteria
you select to use.

Choose which ever one of the three ideas is easiest to talk about in all three of these sections.

Split into three sections Suitability acceptability and feasibility:

Suitability: choose the idea which realistically would help the business improving business
opportunities, has the least threats and environmental factors. Use Johnson Scholes and
Whittington (2005:362) for ideas.

Acceptability: How shareholders, employees and customers would perceive this new idea.

Feasibility: Look at the Financial feasibility and how this idea could affect financial stability of
the company, Looking at previous figures and whether the business has a debt, would this idea
be financially feasible for the business. Potential financial implications?



This section should be the biggest at around 650 words




4) Identify and evaluate the key issues for implementation of the strategy option you evaluated in
element 3) above especially
a) the functional issue of human resource management in the light of the culture of the
organisation,
b) any other significant issues for specific business functions and
c) the management of change that is implicit in the implementation of strategy.

Implementation issues will probably impact differently on the different business functions
which go to make up the organisation. Much will depend on the organisations resources and
competencies but, being in a service industry, certain business functions such as human
resource management will always have particular significance. The way these are managed
will depend on the culture of the organisation and perhaps the nature of the industry.

Strategic development invariably involves a degree of change, but change can vary in degree
from continuous improvement / incremental to radical or even revolutionary. Change
management theory addresses the whole range of degrees and you should decide what is
appropriate in the case you have picked and judge what the change management issues would
be.
500 words