Solution
3.0 External Analysis of Factors Affecting TG and their Impact on Change and Organisational Development
In modern organisations, their operations are based on an external business environment. According to CIPD (2020d), understanding the external environment factors, it is possible to identify the factors that impact on their strategy and business decisions. As highlighted in CIPD HR professional map, external environment is a core knowledge that allows HR and managers in assessing potential risks that are specific to their entity and industry and from this using the knowledge in informing strategic decision making. Similarly, in the context of TG, external environment analysis is a critical process for establishing a successful strategy. PESTLE analysis that evaluates the political, economic, social, technology, legal and environment can be used in the analysis.
Political
Political factors are evidenced by the government policies, reforms and legal systems (CIPD, 2017). Taking into account of the Travel UK case, one of the critical political factors is Brexit which is the UK government decision to leave the European Union (CIPD, 2018). To affirm this, New York Times (2020) report had pointed out that travel industry would majorly be affected, which is a major area of operations of TG in UK.
Additionally, the introduction of the tourism and bedroom tax Guardian (2020) in UK has a significant ramification to the touring and travel industry. This has affected England in terms of maintaining its leading position as the most preferred tourist destination in Europe. The limitations in tourist’s movement to UK directly affected their revenues generation. In entire Europe, increased threats from terrorism equally contributed to negative implication to the travel group.
Economic
The recent economic trends characterized by factors such as fluctuations in interest rates, currency exchange rates, inflation and low purchasing power direct affect the scope of their operations. According to Seyidov and Adomaitienė (2016), travelling industry is interconnected with the other sectors, and changes in economic factors directly affect sector sustainability. Nevertheless, as noted in VOX (2020), the inflation increases directly hinder the consumer buying power hence a decrease in number of customers for TG.
Any organisation development strategy by TG must be informed by the need to balance both economic strategies and lowering prevailing trading restrictions. Also, their strategies for sustainable development such as being included in the Dow Jones Sustainability Index (DJSI) and the FTSE4 Good Sustainability Index are dependent on the extent of their customers meeting the minimum threshold.
Social
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