Global Strategic Management Assignment Sample

• Type Assignment
• Downloads528
• Pages18
• Words4586

Introduction to Global Strategic Management Assignment

Globalisation refers to the concept used to describe how business and technology have made the world more interrelated and interdependent. It is the process of communication and integration among people, organizations, and governments across the globe (Yameogo, Omojolaibi, and Dauda, 2021). Global tourism is defined as the activity of individuals traveling to different countries for entertainment, business, or other purposes. It includes both international tourism, where tourists travel from their home country to a foreign country, and domestic tourism, in which people travel within their own region or country. Globalisation and tourism can have a substantial influence on the economies of both destination countries and the tourists’ countries of origin. Students analyzing these concepts in academic assignments can access UK Assignment Help for expert guidance, structured writing support, and research resources.

Global strategic management refers to the procedure of exploiting the collaborations which exist across different countries that help to provide competitive advantages. It requires firms in a combined group of economies to develop business strategy (Wenzel, Stanske and Lieberman, 2020). Global tourism strategy is a kind of structure for the mobilisation of the valuable resources to realise long-term goals. It involves economic growth, employment creation, eliminates poverty, reduces income differences, reduces the gender disparities, promotes and support economic empowerment.

TUI, a leading travel and tourism that operates worldwide has been chosen. The journey of the TUI began in 1968 and now the company has become the world’s leading tour operators. In the year of 2007, this tourism organisation merges their business with other tourism company which is British First Choice (TUI Group, 2024). This report will explain about the strategy, global strategy and strategic management of the TUI. Further, it will highlight the organisational strategy and strategic procedures along with its importance for the company. Furthermore, this report will also discuss the strategic planning and global problems faced by UK government. The aim behind initiating current study is to evaluate global strategic management aspects or process followed by TUI.

Objectives:

Main Body

Chapter two: Global Strategic Management

Strategy refers to the process or plan in which an individual, group or organisation focuses on their efforts to accomplish the goals and also emphasises on how they will get success. In other words, strategic management lays more focus on the optimum allocation of resources which facilitates accomplishment of the common goals or objectives (Jamaludin et al, 2020.). The word strategy originates from Greek strategies which mean a selected general in ancient Athens. In the year of 1994, the World Heritage Committee introduced global strategy for representative and credible world heritage list (UNESCO World Heritage Centre, 2024). Its main aim is to make sure that the List replicates the culture and natural diversity of the world. Strategic planning is hardly confined to only one strategist. Now, strategic planning shows the contributions of working groups and agencies.

Global strategy refers to the strategy that a firm creates to expand their business into the international market. Basically, global strategy is a kind of plan to facilitate a firm grown from global business that sells goods & services in other countries and get success in the business. The main purpose of producing global strategy is to boost sales all over the world. It involves standardisation, global and multinational strategies (Lasserre and Monteiro, 2022). Global strategic management refers to the implementation of strategic management within international market by the organisations especially multinational companies. Global strategic management is crucial for the survival of businesses which operates within the global business environment. With the help of the global strategic management, a multinational company can take benefits of emerging or developing markets through selling their products and services to global customers. By this strategic management, an enterprise can leverage new resources or less expensive resources that help to reduce their costs and boost profit margins. Moreover, global strategic management is useful for the organisations to diversify risks which could become main threats.

Global Strategic Management Assignment Sample

Liked This Sample? Hire Me Now

Leslie King 7 Years | PhD

TUI is the world’s largest travel, tourism and leisure business that offer tourism related services to the local as well as global customers. TUI highly focuses on making strategies that help business in dealing with the different situations even in complex events. TUI Group strategy pays attention on asset-right and profitable development in differentiated content and increasing the consumer base with multi-channel distribution within Markets & Airlines. In terms of Hotels & Resorts, the firm has expanding its portfolio in both new and existing destination countries. TUI always focuses on strengthening their capabilities and take benefits from it to achieve good market position. The management of the TUI Group make and implement plan to facilitate a company to accomplish their goals (TUI AG, 2024). They formulate strategies, establish organisational structure and allocate available resources in an appropriate manner. Furthermore, the leaders and managers concentrate on the change initiatives as tourism markets are transforming rapidly. In this manner, TUI has also adjusted their information technology strategy and is now paying attention on dynamic packaging of hotels, resorts and flights for existing booking systems. The management also supervise and control overall strategic management procedures along with the resources to carry out the business activities in an effective manner. Managers assess the strategic management procedure to identify whether the company has accomplished its objectives or not. If not then they make some changes in plan and apply it in innovative ways to get more benefits. The company wants to attract the new customers and retain the old one by introducing new products and services at the same time they focus on quality and uniqueness of the services (Fuertes et al, 2020). TUI is increasing its B2B (business-to-business) area by collaborating with Expedia and National Geographic. The company also collects the feedbacks from its employees and customers to make more relevant strategies for business.

Chapter three: Global Strategic Management

Corporate strategy refers to the unique plan or structure which is long-term in nature and formulated with a goal to achieve a high level competitive advantage in the market while fulfilling the requirements of customers as well as shareholders. Corporate strategy shapes the clear goals for a firm and each goal may different. Strategic process is defined as a the planning method utilised by the organisations to establish the long-term objectives, make strategies which facilitates accomplishment of the goals and development of a clear action plan to apply strategies (Hristov, Chirico and Ranalli, 2022). It is a systematic method to define the direction of the company and to align the resources to reach its goals. The process includes evaluation of internal and external environment of firm, setting objectives, creating strategies, make and implement action plan, regular monitoring and update plan as per requirement. Moreover, strategic option which is also called growth option is a plan or business strategy for attaining long-term goals. Basically, it refers to the future flexibility to utilise a project as basis or initial efforts for yet-unimagined projects by further investments. These options are usually challenging to predict but can produce significant value. Strategic option involves perform operations assessment, evaluate market factors, develop new goods and services, increasing business activities, managing human resources and financial resources and select competitive strategies. Strategic decision-making is defined as procedure where a company makes decisions according to long-term objectives, internal elements, external factors and market situation (Laury, Matondang and Sembiring, 2020). Strategic decision-making helps a company to identify where they want to go.

The corporate strategy of TUI Group involves five things such as; central customer ecosystem, holiday experiences, markets & airlines, people and sustainability. The company prioritises the corporate strategy and has adopted as well as applied the vertical integrated approach. The company has great potential to considerably cut down the distribution costs by this approach. Moreover, this approach allows tourism organisation to control all business activities within their supply chain. It is considered as the major strategic advantages for TUI over their competitors. TUI has launched the applications which are the major part of their corporate strategy. The expansion of "My TUI App" from service to marketing application provides lots of advantages to the business (TUI AG, 2024). The company will be able to improve the interaction with the customers all over the world by increasing their offerings and marketing efforts. TUI group has achieved good progress in this area but aims to concentrate more on uniform consumer account format as well as identical payment system in the future.

TUI has adopted the integrated business model that allows the firm to take benefits of distribution power of their source markets. As strategic process, TUI Group expands its business in different countries. Recently, the company is accelerating its global expansion with entry to the Latin America as new sales country. This strategic approach capitalises on technology and proficiency of TUI Group which position the firm for significant growth in the region. The company regularly focuses on sustainability and innovation so that it can contribute to the development and wealth of the economy. TUI Group is leveraging their knowledge, competencies, experiences and strong presence in holiday destinations for the sustainable alteration of travel. With the publication of company’s sustainable agenda, TUI also revealed their ambitious goals that are validated and continuously reviewed from the independent Science Based Targets Initiative (SBTi) (TUI Group, 2024). TUI is the largest tour operator that makes decisions carefully. For instance – In the time of Covid-19, the company has made important decision and has effectively managed the immediate effects. The approach of recapitalisations have allowed the firm to do business actively again. Due to its strategic decision-making, TUI retained its customers and increased profitability. Now, TUI continues to concentrates on profitability by expanding the tour related activities and packages. Excellent business model enable source markets to operate with maximum flexibility that allows business to make personalised packages while optimising yield and reducing risks that helps in increasing revenue.

Chapter four: World Strategic Management

Mintzberg’s five Ps of strategy was developed by Henry Mintzberg to provide help to the business organisations to navigate the complex landscape. This strategic model involves five different approaches such as; plan, ploy, pattern, position and perspective. Mintzberg’s five Ps of strategy can provides an organisation a comprehensive way to evaluate and make meaning and easy to understand strategies. Application of Mintzberg’s strategy on TUI Group is given below:

Plan – It is the most traditional and execution-oriented view of strategy. It includes setting of clear objectives, defining actions to attain those objectives and distribution of the resources accordingly. It is crucial for the company to have clear objectives while crafting plan. TUI has an excellent management that helps the business by designing and making clear plan. It involves particular goals as well as action steps (Savitri and Naili, 2020). The company has adopted the vertical integration approach that facilitates them to reduce the operational and distribution costs and increase performance of business.

Ploy – A ploy strategy is a particular move formulated to get a competitive advantage or discourage rivals (Amalia and Mohammad, 2023). It is more common in extremely concentrated sectors, where there are few competitors that have planner in their mind. The management team of the firm think about the possible strategies or tactics to get competitive edge over rivals. TUI offers excellent services and tour packages to attract more customers and increase sales.

Pattern – Patterns are usually emergent strategies which rise from the past success. Through evaluating the patterns of actions and decisions of team a company can identify their actual strategy and compares it with the intended strategy. TUI analyses the patterns to make sure that their actual strategies are aligned with the planned strategies (Karki and Ghosal, 2023). TUI has chooses pricing of its services based on the supply and demand. The company regularly changes its prices frequently and offer low prices in high supply situations.

Position – These strategies concentrate on who the customer or target audience and how customer will perceive company’s work. Basically, it refers to the firm’s place within the market related to its competitors. TUI uses the information about the buying behaviour of the customers which are collected by conducting market research. The insights concentrate on requirements, values and lifestyle. By using this information, TUI positions itself as sustainable tour operator.

Perspective – It refers to the way a company views their business as well as world around it. It could be a philosophical belief, insider knowledge or prominent data point.

TUI has adopted and implemented robust approaches and carefully makes strategies regarding business. The management team also pays more attention while executing but the firm also faces some challenges in their strategic planning. Marketing team highly focuses on advertisement of the brand and its services. The company perceive itself customer-oriented tourism organisation and offer high quality customer services.

The challenges and limitations are:

• Poor communication – TUI performs multiple business operations and due to various work, a company faces problem of lack of communication with employees. It highly impacts the strategic planning of the firm. The firm has to focus on increasing communication in the organization to execute strategies efficiently.
• Changing customer preferences – The demands and preferences of the consumers are changing constantly because of emerging technologies (Streimikiene et al, 2021). In this regard, company will face issue in drafting competent strategic plan for meeting the evolving preferences of tourists.
• Lack of focus on infrastructure – TUI Group does not invest in information technology and do not address inefficiencies as well as difficulties in their existing infrastructure. It prevents the company to execute their strategies effectively and meet the expectations of the customers.
• Legal compliance – TUI operates in many countries and each country has different rules and regulations regarding trade. It is crucial for the company to follow all rules and policies while making strategies. If the company does not follow the rules then they can face legal risks. It can reduce the position and harm reputation of the company in the market.

Chapter five: Global Strategic Management

Define organizational resources

Organizational resources include tangible assets and concrete materials that supports program, delivery of services and practice improvements. Organizational resources are consisting of stable and adequate funding, facilities and equipment, staffing, informational resources and technologies. Having the effective organizational resources is important because it helps in companies to meeting the needs; enhance performance and accomplishing the goals and objectives. To gain the competitive advantage over competitors and providing high quality of services, TUI is also emphasizing on the adoption of resources which helps in meeting the needs of the tourists or visitors. Effective resources help the chosen organization in meeting the needs and requirements of consumers as well as stakeholders. Making the significant investment in the organizational resources are beneficial for the organizations because it helps in enhancing productivity, facilitates customer satisfaction, improves employee engagement and decision-making as well as gaining competitive advantage over competitors (Näyhä, 2020).The UK government is also facing the issue related to limited resources like foreign assets which directly influences the overall operation of the companies like TUI.

Additionally, to tackle the situation, TUI will need to use various organizational resources such as assets, organizational culture, knowledge, procedures, funding, staffing, technologies, facilities and equipment etc. The assets are consisting of social capital, financial and technological. Maintaining the assets are significant for chosen organization because it helps in increase value, enhance operation, increase liquidity and enhanced compliance (Werdhiastutie, Suhariadi and Partiwi, 2020). Staffing is considered as another significant organizational resource that assist TUI to provide better services to the customers and gain competitive advantage in front of competitors. To mitigate the problem related to resources at international level, TUI can emphasis on hiring skilled and talented employees who are competent to put all the efforts to provide high-quality and better tourism services to the customers.

Define organizational culture

Organizational culture is defined as the set of beliefs, values, behaviors & attitudes that illustrates the work environment of the companies and encourage the behavior of the employees. Development of the positive organizational culture is valuable for the companies because it helps in increasing employee engagement, decreases turnover and strengthens brand identity which eventually positively influences the overall efficiency and operations (Paais and Pattiruhu, 2020). TUI is also developing the organizational culture of its operation from which its employees feel encouraged and motivated to give their performance and providing better tourism services to the customers. Having the positive culture is beneficial for the selected organization because it helps in promoting the sense of belongingness and purpose among workforces. When workforces feel supported, valued and aligned with the goals & values of the organization then they are more inclined to be committed as well as engaged to its work.

Additionally, organizational culture has significant impact on the strategic management of chosen organization by facilitating innovation and adoptability. Strong culture helps in encouraging the risk-taking, creativity and continuous learning that empowers the workers to experiment with new ideas. Innovation and adaptability facilitates TUI to stay agile and competitive in an ever-evolving business environment. Along with this, strong culture helps in enhancing the performance and productivity of the organization which leads profitability, enhances efficiency and increases productivity. For developing the positive culture, TUI is emphasis on implementing Cameron Und Quinn’s competing value framework that consists of clan, adhocracy, hierarchy and market culture. TUI is emphasizing on developing the market culture of its organization which eventually positively influences the overall strategic performance and management. This type of culture is highly result-oriented and competitive as well as emphasis on accomplishing goals, competition and maximizing the economic success which aids in gaining competitive edge over rivalries (Azeem et al, 2021). Development of this type of organizational culture is beneficial for TUI because it helps in promoting performance, makes more focus on results and willingness to operate the business operation within the competitive market in successful manner. Furthermore, this organizational structure positively impacts on the strategic performance of the chosen business by facilitating innovation, communication and collaboration; enhances employee engagement and organizational alignment. Positive organizational culture also helps selected business to attract and retained skilled employees from which they put all efforts to provide better services to the customers.

Chapter six: Global Strategic Management

Tourism industry is profitable sector and contributes highly in the development of economy. Tourism business involves many activities and can provide different opportunities to the company to grow in business. There are some opportunities that can be used by TUI to develop business.

• Global expansion – TUI has experience of many years which can be used to expand the business in other regions. It can help the company to increase market share and profit margins.
• Use VR technology – TUI Group can invest in VR (virtual reality) which is advance technology (Oncioiu and Priescu, 2022). The firm can utilise VR technology at their cruise and ships so that tourists can visit the famous landmark virtually in 360-degree view and enhance tour experiences.
• Sustainable tourism – Although, TUI is investing on sustainability aspects but it has opportunity to makes their tourism business environment-friendly. The company can reduce the single-plastic in their flight services. By making focus on these aspects TUI can attract more customers and thereby gains competitive advantage as well.

Issues and challenges can be faced by the TUI while operating business globally:

• Changes in rules – Regular changes in the government rules can put pressure on the TUI to change own policies and rules. It can be time-consuming and can impact other business operations.
• Security risks – There are many countries in the world where tourists are facing safety related issues like terrorists attacks (Fourie, Rosselló-Nadal and Santana-Gallego, 2020). Due to this, tourists may cancel their flight and hotel bookings if they feel find the particular is unsafe. Consequently, it places direct and significant impact on the sales and profitability of TUI.
• Economic instability – Economic downturn or uncertainty, can increase the problem of low disposable incomes. This in turn places impact on customer decision making about vacations and related travel packages as well.

Competitive advantage is explained as factors that allow an organisation to manufacture products and services in better quality or more affordable compare to its opponents. These factors provide chance to the company to increase sales and achieve superior margins compared to their competitors and make strong presence in the industry. A competitor analysis which is also known as competitive analysis is a kind of procedure of finding out the potential rivals within the specific industry and researching their various and unique marketing strategies (Farida and Setiawan, 2022). It is highly important for the company to identify their competitors and their strategies as it will be helpful for them to recognise how they can improve own strategies. By competitor analysis, a company can gain valuable insights and information and they can use it to figure out own strengths as well as weaknesses. It is crucial for the TUI Group to focus on competitive analysis so that they can aware about the competitor’s strategies and improve own strategies to grab the attention of more people.

Porter’s five forces analysis

• Bargaining power of customers – Tourism sector regularly fluctuates with the customers changing requirements. With the growing competition, customers have lot of options to choose from, therefore it put pressure on the company to comply with evolving demands of customers. So, the impact of this force on TUI is high.
• Bargaining power of suppliers – The impact of supplier’s bargaining power force is low for the TUI Group because they utilises backward integration. It means the company has own suppliers (Göral, 2021). TUI is powerful company and has strong negotiating power. Sometimes, TUI Group itself acts as its own suppliers.
• Threat of new entry – It is quite difficult for the new company to establish a tourism company as it requires huge investment. It is not possible for the new firm to invest money in high amount. Also, TUI has excellent knowledge and experience in this field and capabilities which cannot be match by new company. Thus, the impact of this force is low for the TUI Group.
• Substitution threat – Tourism industry is growing rapidly in all over the world which has increased the demand and needs for strategic differentiation. Customers always seeks unique and new experiences and different attractions while travelling. There are many other companies who provide excellent and unique services that can impact the business of TUI. On the other hand, TUI provides excellent cruise and ships services that differentiate the company from its competitors.
• Competitive rivalry – There is a stiff competition between companies in the tourism industry. Expedia Group Inc., Jet2 Plc., Booking.com, Kuoni Travel Holding and Thomas Cook Group are some top travel and tourism companies that offer high quality services. They can give tough competition to the TUI Group and can impact business.

Conclusion

As per above report, it is concluded that TUI Group, a global travel and tourism organisation highly focuses on their strategic management. The company operates in many country and offer excellent services to the customers. The firm has applied the vertical integration approach and also used the My TUI App as marketing app to promote the services. TUI has recently entered into the Latin America as their global business expansion which help the firm to cater to new customers and provide more income sources. Furthermore, as global tourism company, TUI Group highly focuses on sustainability to reduce the carbon emission and save the natural resources. Due to strategic decision-making approach, the company has successfully handled pandemic and meet the demands of the tourists while addressing the challenges. It is also analysed that the company has good opportunities to enter into new country because of advance technologies, experience and industry knowledge. TUI can face challenges in their business because of changes in rules, political inconsistency and economic instability.

Recommendations

From above analysis, there are some excellent recommendations for the organisation to enhance the future business operations.

• It is recommended to the company to increase its marketing efforts and use social media platforms for promotion. It will help to increase brand awareness and increase global customer base.
• It is suggested to the TUI Group to include improve its health and safety system to provide seamless experiences to customers. Tourists can face any kind of problem during their travelling and the company should make sure that they solve their problems and take care of their safety.
• TUI should improve its communication approach so that employees can aware about the new global business strategies and provide support to the global strategic management.
• It is recommended to the firm to invest more in digital technologies and infrastructure so that they can identify the changing needs of customers. It will also help them to improve tailor their services according to customer demand and meet their expectations.

References

Books and Journals

• Amalia, S.I. and Mohammad, W., 2023. Mintzberg's 5Ps Strategic Management Model at Yuda Curtain Shop. Himeka: Journal of Interdisciplinary Social Sciences, 1(1), pp.83-89.
• Azeem, M., Ahmed, M., Haider, S. and Sajjad, M., 2021. Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation. Technology in Society, 66, p.101635.
• Farida, I. and Setiawan, D., 2022. Business strategies and competitive advantage: the role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), p.163.
• Fourie, J., Rosselló-Nadal, J. and Santana-Gallego, M., 2020. Fatal attraction: How security threats hurt tourism. Journal of Travel Research, 59(2), pp.209-219.
• Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review—descriptive. Journal of engineering, 2020(1), p.6253013.
• Göral, R., 2021. Competitive Analysis of the Hotel Industry in Konya by Using Porter’s Five Forces Model.
• Hristov, I., Chirico, A. and Ranalli, F., 2022. Corporate strategies oriented towards sustainable governance: Advantages, managerial practices and main challenges. Journal of Management and Governance, 26(1), pp.75-97.
• Jamaludin, S., Azmir, N.A., Ayob, A.F.M. and Zainal, N., 2020. COVID-19 exit strategy: Transitioning towards a new normal. Annals of Medicine and Surgery, 59, pp.165-170.
• Karki, M.B. and Ghosal, I., 2023. Applicability studies of Mintzberg's Models of Strategic Decision Making in the Development of the Nepalese Automobile Market: An Investigation with Reference to Industry 5.0. Pacific Business Review International, 15(10).
• Lasserre, P. and Monteiro, F., 2022. Global strategic management. Bloomsbury Publishing.
• Laury, H.A., Matondang, N. and Sembiring, M.T., 2020, May. Balanced scorecard in the integration of corporate strategic planning and performance: a literature review. In IOP Conference Series: Materials Science and Engineering (Vol. 801, No. 1, p. 012135). IOP Publishing.
• Näyhä, A., 2020. Finnish forest-based companies in transition to the circular bioeconomy-drivers, organizational resources and innovations. Forest Policy and Economics, 110, p.101936.
• Oncioiu, I. and Priescu, I., 2022. The use of virtual reality in tourism destinations as a tool to develop tourist behavior perspective. Sustainability, 14(7), p.4191.
• Paais, M. and Pattiruhu, J.R., 2020. Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The journal of asian finance, economics and business, 7(8), pp.577-588.
• Savitri, F.M. and Naili, Y.T., 2020. Henry Mintzberg’s business management strategy post-pandemic Covid-19 (Social learning approach on Ali Murah Shop Madinah). International Journal of Social Learning (IJSL), 1(1), pp.62-74.
• Streimikiene, D., Svagzdiene, B., Jasinskas, E. and Simanavicius, A., 2021. Sustainable tourism development and competitiveness: The systematic literature review. Sustainable development, 29(1), pp.259-271.
• Wenzel, M., Stanske, S. and Lieberman, M.B., 2020. Strategic responses to crisis. Strategic Management Journal, 41(7/18), p.3161.
• Werdhiastutie, A., Suhariadi, F. and Partiwi, S.G., 2020. Achievement motivation as antecedents of quality improvement of organizational human resources. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Volume, 3, pp.747-752.
• Yameogo, C.E., Omojolaibi, J.A. and Dauda, R.O., 2021. Economic globalisation, institutions and environmental quality in Sub-Saharan Africa. Research in Globalization, 3, p.100035.

Online

• TUI AG, 2024. Group Strategy. Online Available through < https://www.tuigroup.com/en-en/investors/strategy#:~:text=TUI%20Group%20Strategy%20%E2%80%93%20Annual%20Report%202023&text=Our%20Holiday%20Experiences%20(Hotels%20%26%20Resorts,in%20particular%20outside%20Markets%20%26%20Airlines >
• TUI AG, 2024. Strategy. Online Available through < https://www.tuigroup.com/en-en/about-us/about-tui-group/strategy-new >
• TUI Group, 2024. TUI Group Accelerates Global Expansion with Strategic Entry into Latin American Market. Online Available through < https://www.tuigroup.com/en-en/media/press-releases/2024/2024-09-14-tui-group-accelerates-global-expansion-with-strategic-entry-into-lattin-american-market#:~:text=TUI%20Group%20is%20accelerating%20its,substantial%20growth%20across%20the%20region >
• TUI Group, 2024. TUI History. Online Available through < https://www.tuigroup.com/en-en/about-us/about-tui-group/tui-history#:~:text=The%20journey%20began%20in%20December,to%20form%20Touristik%20Union%20International >
• UNESCO World Heritage Centre, 2024. Global Strategy. Online Available through < https://whc.unesco.org/en/globalstrategy/ >