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Environmental Evaluation Of Thomas Cook Tourism Essay


This report deals with one of the leading travel group on the globe which has experienced operation since the past. It's been considered as the most trustworthy and reliable travel group which offers travel packages to its customers across the world. The travel group is Thomas Make and it is one of the leading travel and tourism agencies in the world. In this assignment, the company of Thomas Cook has been analysed considering the internal and the exterior environmental factors. A number of the important models such as McKinsey model combined with the Pest analysis, SWOT and other models have been used to analyse the company. The main target was to research the external and inner environment influencing the organisation. Control style has been reviewed, and it can been seen that Thomas Make meals has one of the cost effective organisational composition and employs a flexible business design such that it can be improved as so when needed. Finally the newspaper ends with suggestion and bottom line which expresses that the business should work according to the demand of the clients in order to remain competitive and keep maintaining its number 1 position.


Aim of the Report

The goal of this article is to carry out an effective inner and exterior environmental evaluation of Thomas Make based on distinct models. The examination would help one understand the main element competencies of the firm and also the areas where development is needed. Advice are also to be provided in scheduled course to improve the positioning.

Overview of the Organisation

Company Size

Thomas Make is one of the primary companies in the field of leisure and travel and is also observed to use along a sizable geographical segment pertaining to 22 countries across the world. The business has emerged out to be a key market leader in the leisure and travel category. Thomas Cook, during the financial yr of 2011-12 earned total sales revenue emanating to 9. 8 billion from a total customer bottom part of 23. 6 million people around the globe (Thomas Group Plc, 2012).

Company Structure

Thomas Cook runs based on a decentralised composition where the table of directors are responsible for delegation of duties and obligations to following committees and other sub-boards. The structure operates along a top-down or vertical integration fashion in the company (Thomas Make, 2010, p. 53).

Main Activities

Thomas Make Plc works along several segments to render value-added services to the clients. The first or the primary product segment contains of packaged tourism services where both flights and hotel services are grouped under one package and rendered to the client. The second segment consists of impartial packages that assist in rendering consumers a more substantial versatility in choosing the travel spots, duration of head to and other value additions. The third product segment focuses on making financial support to the vacationers in conditions of foreign exchange or money transfers and also in tour guarantee services. Fourthly the group also functions via retail residences that help in distributing tour plans and will be offering to the consumers. Finally the group also functions on the basis of internet where it focuses to serve consumers in Western and pan-European markets effectively (Thomas Cook, 2011, p. 13).

Objectives of the Report

As market analyst and researcher the are accountable to be provided would identify the strategic potencies and disadvantages of Thomas Cook operating around the world in the travel and leisure segment. The report shown would eventually help the business management potentially talk about the drawbacks highlighted to develop its performance potential in the foreseeable future.

Analysis of the Organisation

Internal Environmental Analysis

Employee Engagement Analysis in Thomas Cook

The research of employee engagement in organisations reflects the manner in which the people involved relate their activities and carry out to the inherited ethnicities and principles of the matter. Thus a worker engaged is taken to be highly aware of the organisational beliefs and cultures and in doing so coordinates with other acquaintances to effectively achieve organisational goals and aims. The amount of employee proposal enhances with the level of relatedness the workplace has with the staff communities (Vazirani, 2005, p. 3).

Herein, the component of employee engagement is utilized to analyse the amount of loyalty and dependability of the employees in Thomas Cook.

The management of Thomas Cook endeavours to effectively interrelate with the employees involved in different levels to talk about with them potential information regarding changes in organisational strategy and plans. Effective interrelation and communication is carried out by the management both along the net and physical sphere in terms of online talk and electronic mails and flow of internal periodicals respectively. Moreover the employees are also asked to take part in workshops and training programs that subsequently enhance their potential to perform in their specific task areas. Further the management body of Thomas Make from time to time conducts effective surveys to understand the amount of interrelatedness of the employees, both new and old to the organisational values and business directives. Study carried out would obviously hint on the satisfaction and dedication level of the inner people in Thomas Make. Satisfaction degree of the inner people duly increased helps Thomas Make in handling the changing needs of the consumers and also in effectively minimizing the amount of personnel turnovers in the organisation. Henceforth, employee proposal activities in the company motivate the people to work more productively and in so doing augment the income and output paradigm of the matter (Thomas Cook Group plc, 2011; Thomas Make Group plc-a, 2011).

Analysis of Thomas Cook based on McKinsey's 7S Model

The Model

In the McKinsey's 7S Model first of all, the management works on the basis of set in place strategies incorporating the views of many to help arrive at a particular action plan to accomplish end goals. Subsequently, the management works on a particular structure to combine the individuals working in various levels more effectively to meet end goals. Thirdly, the company works predicated on a set of policies and types of procedures in achieving goals establish. Fourthly, the matter uses interior people as an integral resource in meeting the tasks place. Fifthly, different professionals reflect different types of styles in meeting the same targets. Sixthly, the management must share the targets and regulations of the nervous about the employees to organize the actions taken. Seventhly, the skills of individuals need to be enhanced in appointment end objectives effectively and effectively (Bhattacharya, 2011, p. 333-334). McKinsey's 7S Construction is shown in the following diagram.

Figure 1

(Bhattacharya, 2011, p. 334)

The capabilities of the model would be utilized to analyse the inner environment of Thomas Make meals for they help in setting up a paradigm by which the organisational supervisor gains the in drawing the interest of the employees in achieving end goals.


The organisational framework of Thomas Make meals is available to be vertically integrated with a top-down management framework. Thus decisions are usually considered by the panel of directors and higher management body of the concern and percolated downwards to different organisational levels. However in recent years, Thomas Make meals is observed to adopt resort of a global outsourcing strategy to transfer the financing and accounting services in the hands of outsourced clubs to help in cost reduction and organisational efficiency (Banham, 2005).


Thomas Make meals works based on an integrated business model incorporating the developing of both individual and packaged trips and also assisting the consumers in terms of financing and insuring their travel activities. Similarly, the company works in gaining an improved consumer basic through carrying out its functions via retail marts and also through the web base. Thomas Make trains its staffs to provide effective customer services acting on such planes (Thomas Make meals, 2011, p. 13).


The management style at Thomas Make firstly works in encouraging the expansion of organisational diversity in terms of employing people regarding different ethnic backgrounds, making love and age distinctions. Subsequently, the management style in the matter promotes development and promotion predicated on merits and performance guidelines and in that way restricts the practice of discrimination at work (Thomas Make, n. d. ).


The organisational management works in effectively recruiting a gifted and knowledgeable workforce in the concern. Having recruited a skilled and multi-skilled labor force the management works in motivating folks and effectively integrating training those to fulfil the needs of the matter (Thomas Make Group plc-b, 2011).


The skills of the internal people are improved by Thomas Cook through the incorporation of effective training and performance management programs. Feedback is made to the employees based on performance appraisal systems to help them dwelling address the drawbacks. In 2011, the business spent around 9. 9 million regarding the training section (Thomas Cook Group plc-c, 2011).


The key business strategy of Thomas Make is to train its employee base to provide value-additions to the service guidelines regarding the category of indie travel. Further, the management also really wants to enhance the financing and business development parameters of the travel related services construction to augment the customer satisfaction experience (Thomas Cook Group plc, 2012).

Shared Values

The higher management body of Thomas Cook works on the basis of transmitting potential information regarding business and proper value to the employees regarding different levels. Throughout the above function the company management really wants to work as an individual unit in assisting to attain end goals effectively (Thomas Make meals Group plc-d, 2011).

Leadership Design of Thomas Cook

Adair (2011) claims that control style regarding an organisation increases effect in a way that where different individuals and categories are used to help in achieving a desired activity. Herein, the administrator must divide the whole task among organizations and individuals and thus to screen and evaluate their performance levels in assisting to meet up with the objectives considered (Adlair, 2011, p. 92-93). A similar can be represented through the next illustration.

Figure 2

(Adair, 2011, p. 92)




The leadership style of Thomas Cook shown that it works on an activity based model where decisions taken by higher management are percolated through the management hierarchy along different levels.




Ideal leadership design of Thomas Make would be where the process is uniformly matched with team and specific pursuits. However, the same is difficult to apply for it means a full restructuring of the organisational composition.




Thus the perfect style is always to delineate and percolate the whole organisational task along different layers while at the same time stimulating the development of people and clubs by adding them in decision making functions.

Organisational Framework of Thomas Cook

The organisation structure of Thomas Make is mirrored in Amount A in the Appendix section. Headed by the Panel of Directors the business is run by different committee physiques looking after money, health and basic safety, auditing and disclosure functions and similar other departments. These committee systems report to your body of Directors. In the same way the different sections and functions of the company are governed by different planks which are associated therewith other country minds serving different markets (Thomas Group Plc-a, 2012).

Human Tool Systems in Thomas Cook


The induction program of Thomas Make helps in presenting the people to the techniques and insurance policies of the company. It also helps in providing advice to the students regarding areas of value and culture of the business. Moreover, a pal is rendered with the apprentices who expose the aspirant to the task to be performed at different levels combined with the values of the company. Effective study is conducted predicated on the apprenticeship program where feedback is gained from these to be used for even more improvements in the induction training rendered. Again, the apprentices are also rendered specific electric learning modules to enhance the data of the employees in the light of improvements and improvements (People 1st, 2011).


The company conducts effective performance appraisal programs of people regarding different levels in the company. Performance reviews of the individuals in the concern are conducted by using an gross annual basis and feedbacks are produced to the people on that behalf. Development of the individuals is done through including them in training programs where the skills sets are honed to meet disadvantages (Thomas Make Plc, 2010).


Internal communication is used in Thomas Make through the holding of meetings by the board of directors of the matter yearly on timely schedules. As well as the scheduled meetings the directors are also responsible for conducting of other additional and supplementary meetings as so when needed by the company. It is discovered that on an over-all note the plank of directors contains around 9 scheduled and 10 other additional conferences in the company (Thomas Cook, 2011, p. 45).


A host of financial and other incentives and amenities are rendered to the individuals by the company in order to effectively preserve a fruitful and highly skilled workforce. The range of benefits rendered range between holiday packages, to shopping discounts and various insurance and other leave related benefits. Moreover the workplace is made advanced in terms rendering adaptable working time to help the people work more productively.

Areas of Development in Thomas Cook

Structural Paradigm

Pertaining to the structural paradigm the release of decentralisation in the organisational ambit has required the business to incorporate it infrastructure in the building of data centres in several areas (Chillingworth, 2010).

Leadership Style Paradigm

The professionals of Thomas Cook must adapt to changing situations through training programs rendered based on change authority models. Likewise, the management skills are honed through incorporation of tenets pertaining to emotional brains and qualities to manage stress at work (People 1st, 2008, p. 3).

Systems Paradigm

Pertaining to procedure systems and procedures the business is focusing to enhance its relationship with the consumers through augmenting their protection paradigm and suppliers like hotels and air services with an enhanced scale. Additionally the company is also doing work for promoting a safer and healthier environment through analysis of carbon footprint (Thomas Group Plc, 2009).

Plan of Development in Thomas Cook

Kotter's Eight Step Model

The research of the plan of development in Thomas Cook is conducted predicated on the Eight Step Model shown by John P. Kotter of Harvard. The first three steps give attention to analysing external changes, changing the eye-sight and in that way aligning teams to include the change process. The subsequent three steps give attention to implementing the change process through effective communication, empowerment of people and motivating people through short-term wins. Finally, the seventh and eight steps concentrate on sustaining the change rendered and boosting the effects of the change through adjustments (Kotter, 2006, p. 4). A similar can be shown in the next illustration.

Figure 3: Kotter's Eight Step Change Process

(Kotter, 2006, p. 4)

Change Process in Thomas Cook

Firstly, the company management created the urgency in getting profits from the marketplace. Second of all, a team was made through replacements and marketing promotions rendered in the professional body to include the change. Thirdly, a new eyesight was created focusing on reducing costs, redesigning its organisation structure and boosting its existing brand image (Linder, 2004, p. 114).

Fourthly, the management endeavoured to talk about the eye-sight gained with the employees involved at different levels. Fifthly, employees were empowered to take individual decisions while rendering services to the consumers. Sixthly, an incentive system was presented to effectively stimulate the employees to enhance the service quality (Srinivasan, 2009, p. 280).

Seventhly, the company focuses on getting hold of talented and effective people that would help the concern achieve its collection goals. Communication across the lines is enhanced through having of training and interactions on the two-way level. Finally, new leadership policies and types of procedures are as a result of the business management to inspire the people to work in a profitable fashion (Thomas Cook, 2010, p. 40).

External Environmental Analysis

No organisation tends to exists in vacuum as each of the organisations is influenced by the exterior environment. The exterior environment identifies the context where organisation promotes, provides and also distributes its services. In maximum number of instances, the company doesn`t have control or has limited control over the environmental factors. Relating to Rubrigt and MacDonald (1981), if the organisation faces weakness it would become the tendency of the company to overlook the chance or the obstacles in the market place, also the external environment (Winston, 1985, p. 45).

Process of Environment Monitoring in Thomas Cook

With a wide range and level of environmental effects over the business of Thomas Make meals, the operating companies have a tendency to coordinate the performance of the environment locally under the banner of "Group Environmental Policy". Thomas Make is devoted in minimizing the impact of the surroundings by using protecting the surroundings and the resources and the business usually depends on safeguarding the wildlife, biodiversity and also pet welfare.

Market research: To be able to monitor the approaching challenges and developments of the buyer Thomas cook can conduct market research predicated on the needs of the clients. As the disposable income rise, there occur a shift in the mentality and so it is required to introduce and work accordingly the customer's expectation. Thus doing a proper general market trends would help the travel agency to stay ahead of its competitors. The business can make a full page and talk about it in social networking sites to get feedbacks about the new strategies and can transform accordingly.

Demographic: Thomas Cook is a well known and the oldest travel organization and thus the clients are attracted towards it because of the trustworthiness and experience. Thomas cook can broaden its stores where most range of customers trip to attract even more customers.

Benchmarking: Thomas Make has benchmarked the staff satisfaction. The company believe that worker who is engaged will perform better which leads to satisfied and dedicated customers. Thomas Cook has compared each one of the business segments via an employee review and the rate of response was 64% in the entire year 2009. According to the survey in 2009 2009 the proposal index was 3. 74 when compared with the benchmark index of 3. 67 (Thomas Make Group Plc, 2009).

Trade publication: Thomas Cook pocket guides includes about 170 destinations and at the same time compact and useful guide for the sun seekers and also for the town breakers. Other tutorials available for the travellers include driving guides, travellers guide among others. Recently Thomas cook has launched Canadian website which is a conjunction with rebranding of all the retail locations of Thomas Cook across Canada (Travel Trade, 2012).

Scenario Planning: Thomas make meals has obtained other travel agents in order to remain competitive in the travel agency sectors.

PEST Analysis of Thomas Cook

PEST Analysis is mainly used to scan the environment. PEST refers to political, economical, sociable and technological factors (Henry, 2008, p. 41). Thus Pest can be used to analyses and scans the overall environment encircling Thomas cook. It is through Infestation that the business can find as well as monitor the weak indicators in order to discover the fractures which form the environment.

Political Factors

The UK travel and tourism industry has encountered huge pressure from the federal government as it includes introduced tourism duty and has said to have an effect on all the travel and tourism business including Thomas Cook. The travel agents had against the proposal of bed tax which the government possessed levied 1 per head per nights from the tourists staying in the local hotels. The suggested bed tax is said to increase the local price and keep the foreign guests from holidaying in UK (The Guardian, 2012). The actual tax around 5% to 10% would make Britain the proposed bed tax is thought to increase the home price and keep the foreign guests from holidaying in UK (The Guardian, 2012). It is one of the best taxed holiday locations entirely of Europe (BHA, 2012). Thus with the go up in taxes, business like the neighborhood retailers, the restaurants and the travel organizations are said to be affected.

Economic Factors

During the past few years the travel and leisure sector have faced hard times scheduled to challenging economic times and also have generally impacted the global travel market but however there are signs of recovery within the consumers. The travel and the leisure sector were impacted mainly due to the consumer's throw-away income, unemployment rate, fluctuation in the pace of currency and the petrol price. Each one of these drives have hugely impacted the travel and leisure industry. The GDP declined by 6% in the entire year 2009, the rate of unemployment has increased to about 2%, the price tag on oil stayed highly volatile. As well as the above factor, there are other factors which have impacted the global travel market. Global terrorism has impacted the confidence of the consumers from going along with the swine flu in Mexico which had similarly affected the travel planes along with an elevated taxation the monetary conditions appears to get most detrimental. Therefore credited to these challenging financial conditions, the travel market over the past couple of years has significantly declined in the travel market (Thomas Make meals Group Plc, 2009).

Social Factors

The market of UK is one of the strongest economy in European countries where the throw-away income of the individuals are at a rise and thus the expenditure made on leisure keeps growing at about 6% and so has higher level of expectation from the travel and travel and leisure sectors. Most of the people will at least go for one holiday to overseas, thus increasing the demand of the travel and tourism industry. In addition one of the important markets in travel and travel and leisure is the grey market which mainly comprises of older people who are healthy and fit and therefore has plenty of time along with cash to invest on visiting (Pearson College and School, n. d, p. 11).

Technological Factors

Technological factors refer to the use of internet which has allowed the people the possibility to become much more indie and make plans according with their desire. Thomas Make is designed to be among the top online provider and it could be done through customized and advanced systems.

Analysis of the Competitive Environment of Thomas Cook

The competitive environment is analysed in order to describe the type of the next attributes. As the environment helps to keep on changing each of the listed traits becomes more or less attractive to be able to achieve profitable growth rate. Thus the competitive environment of Thomas Make has been analysed.

Figure 4: Features in the Competitive Environment

(Source: Bigler & Norris, 2004, p. 81)


The Thomas Cook Group is committed to provide a workplace which is free from discrimination and this supports diversity. It's not only beneficial to the staff but also to the business in possessing a diversified labor force. The company provides worker training and monitors the diversity among its employees. Variety is key durability of Thomas Make and is an essential area of the business. The company functions in bout 22 countries and thus employs folks from different backgrounds and ethnicities. A diverse workforce tends to make a vibrant as well as impressive culture of the business (Thomas Make Group Plc-a, 2011). (Refer Appendix A)


Rivalry is high among the list of leisure industry much like the go up in the disposable income people are spending more sum of money on travelling which includes resulted in the development of several travel and leisure and travel organizations. Because of this Thomas Make meals also faces rivalry from other travel agencies such as American Exhibit Company, Carlson Wagonlit Travel and Holiday respite plc (Hoovers, 2012).


The buyers aren't given many options to choose from, by the company and thus they need to finalise from the given set of options and therefore it can be said that the amount of ability of the customers are low.


The amount of hostility is low to moderate in case there is tourism industry. The travel and travel and leisure organizations face from brutal competition but they do not declare an wide open war with respect to price. The online marketing strategy followed by the Thomas Cook and its competitors are almost the same to catch the attention of the customers. The companies compete with one another in every the aspects but do not declare open up price wars with the opponents.

Cost of Entry

The cost of admittance into the travel and travel and leisure industry is relatively average to high. The administrative centre need is usually high and therefore creates a high rate of hurdle for the new entry in the tourism sectors. Also the market talk about is occupied by the very best leaders on the market and therefore it becomes hard for the new company to form a brand image and acquire a great market talk about to contend with the already proven firms. Brand recognition also acts as a barrier to the new entrant.


The degree of fragmentation is high among the travel and tourism industry. Thomas Cook remains highly fragmented as it had the chance to achieve the most notable three market position. Thomas Cook has targeted gross reservation with value of about 3. 5bn (Thomas Cook Group Plc-b, 2010).


The travel and travel and leisure industry is suffering from unpredicted variance and so the turbulence is also high. With economical downturn and other related factors the travel and leisure industry tends to gets influenced to an extremely large degree and it increases the rate of turbulence.

SWOT Evaluation of Thomas Cook

SWOT analysis is mainly used by organisation as strategic planning and usually refers to the recognition of the durability, weakness along with the opportunities and hazards of the organisations. SWOT is conducted to know about the inner as well as the external environment of the company and act accordingly. SWOT Examination of Thomas Cook will allow the travel group to learn its power and overcomes its weakness and through opportunity overcome the risks.


Thomas make has a solid brand and image and is one of the leading leisure travel organizations on earth. It offers various package travels and other trip components and other services. The group has registered revenue of about 9, 808. 9million through the financial yr 2011 The company has were able to show an increase of about 10. 3% from the prior financial 12 months 2010 (Research and Markets, 2012). The group continues to build after the strengths that your company has generated over time such as strong budget, trusted brand profile and the power of the business, with its flexible model, to control the business so the group can meet the needs of the customers in the future (Thomas Cook Group Plc-c, 2009).


One major weakness lays is that with a monetary slowdown the travel organizations have experienced a big breakdown in the number of consumers travelling in one destination to another. It has impacted Thomas Make Group.


With a growth in the throw-away income of the consumers a huge opportunity lays with Thomas Make to expand itself into various other countries and help the buyer go through the pleasure of going. Technology as an upper hands for the travel companies, the web market is said to flourish rendering it easier for the consumers to select from various options made available from the travel agencies.


Threat lies from the other competition which has been doing equally well in the travel and tourism sectors. Numerous travel and travel and leisure agency, the customer's gets an amazing array to choose from the best options which tends to boost the competition one of the travel and tourism industry. Also switch in the consumer behavior also poses a menace for Thomas Make meals.

Major Issues of Thomas Cook

Thomas Make meals has been facing some difficult challenges such as financial loan consolidation as well as restricting. The CEO of the company, Manny Fontenla-Novoa resigned which took the business as a shock. Another set of difficulties is the growth of the company through acquisition. Growth by way of acquisition was one of the main strategies as well as strict cost in order to increase the profit margins. In recent years Cook had closed its market accessibility in Russia by most stake in travel business operator. But at the same time, both inside as well as exterior problems have increased in Thomas Cook and it becomes a huge challenge for the business to endure its operation when the surroundings is not healthy. The demand has slowed because of the weak economy of UK and also its strong concentrate on cost trimming, UK invested little in IT and product which remaining Thomas Cook placed poorly on the market (FVW, 2011). The oldest travel firm in addition has seen a drop in warmer summer months holidays by about 10% which is one of the central businesses of Thomas Make of mailing the family members off to locations like Balearics and Canaries. The stocks of Thomas Make have also slumped to about 86% but nonetheless lots of the problems of the company tend to persists (Moulds, 2012).


Thomas Make is one of the very most successful travel agency which fulfills the travel need of the customers. Thomas Cook is the leading travel groupings with flexible business design and also centered strategy and has a team of more than 31000 people who are equally committed to the vision of the business. It can be said that the business has been carrying out well in the financial season and plans to prosper in the near future but with changing market environment along with the needs and needs of the customers Thomas Cook needs to adjust to new systems and serve or provide its customers with the wants and requirements. Thomas Cook has been facing few difficulties as mentioned and it will take the necessary steps to avoid problems that could hamper the business enterprise of the company. Over the years Thomas Cook has had the opportunity to create a trustworthiness of being the world leading travel group and therefore have had the opportunity to attain the trust and loyalty among its customers. Although there are extensive competitors in the market but using its competitive gain and good service it still remains to be the best travel group around the world.


Based on the above mentioned findings and research it could be said that Thomas Make meals remains to be the most notable leading travel group throughout the world but still faces few challenges. It is strongly recommended to manage the challenges in order to ensure a better service to its customers. Thomas Make should provide react to the feedback to the people customers who make reservation online; it provides discount on its holiday's plans in order to attract more amount of customers much like the recent recession people has become more careful on spending their money so valid and proper plan which says to save money would surely get more customers. It can offer the clients with exciting plans so that the customers feel satisfied of the total amount paid by them and enjoy the pleasure of traveling with Thomas Cook. In addition it will tackle the changes popular along with the change in the consumers demand and needs. This way it'll be able to gain commitment among the clients and stay ahead of its opponents.

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