Corporate Innovation & Entrepreneurship: Assessment Answer

Introduction

The primary objective of this report is to discuss the significant cultural, leadership, and change management issues that prevent The TUI Group from innovating and being creative. Conducts basic examinations concentrating on corporate development and business ventures of TUI Group. Utilising theories, models, and systems, two principal patches of authority, culture, and “change management” have been utilised for examination to introduce a coordinated and thorough reaction to the emergency organised in the TUI Group (Buijtendijk et al. 2021). Through the culture, leadership, and change management cycle, this report will foster entrepreneurial architecture at TUI Group.

This research examines TUI's support for and challenges to creativity and innovation, focusing on two major aspects: organisational culture and leadership (Patch 1) and the change process (Patch 2). This report aims to shed light on TUI's creative and innovative capabilities by examining the company's organisational culture, leadership practices, and change management strategies (Tahseen et al. 2012). The report will provide a comprehensive understanding of the factors that can either facilitate or hinder creativity and innovation within TUI, as well as suggestions for improvement, by utilising influential theories, models, and frameworks.

TUI Group Profile

Company Overview

TUI Group is an eminent global travel and travel industry organisation that has set up a good foundation for itself as a vital participant in the business. TUI has been around since 1923 and is now a global powerhouse that offers exceptional travel experiences to millions of customers worldwide. TUI, headquartered in Hanover, Germany, engages in a variety of travel and tourism industries, including tour operators, travel agencies, hotels, cruise lines, and airlines (Sheikh et al. 2013). TUI, TUI Fly, Robinson, Marella Cruises, and RIU Hotels & Resorts are just a few of the well-known travel brands that the company owns. TUI's activities range from more than 100 objections around the world, making it one of the broadest travel organisations concerning reach and scale.

Companies like TUI face both opportunities and challenges in the constantly changing travel and tourism sector. In this specific circumstance, TUI needs to encourage a culture of imagination and development to remain in front of the opposition and meet the advancing necessities of clients. TUI Group has amassed a client base of around 30 million by conducting business in approximately 180 nations across the world (Tahseen et al. 2012). TUI also has the largest fleet of vacation planes in Europe, as well as other European tour companies.

Gaps and issues

TUI, one of the movement branches addressing the world's driving travel industry, is confronting a few emergencies. One of them is that the business is currently in the midst of a critical financial emergency, which has made the organisation's financial position unsteady (Juhro and Aulia, 2018). Since 2019, TUI Group was not able to draw in a profit and has been consistently losing money. Because of this monetary circumstance, regardless of whether the business is currently expecting the Asian market, it was already solely keen on the movement business in Europe (Buijtendijk et al. 2021). As TUI's rivals have gained a foothold in the Asian market, this has emerged as a significant weakness.

One of the main factors that contributed to this financial crisis can be identified as the situation surrounding the pandemic. All travel agency businesses, including this one, became more depressed as a result of the global pandemic, which severely restricted travel and economic activities (Arshi and Burns, 2018). The company's revenue has decreased by 20% to 30% as a result, representing a loss of $300 billion to $400 billion in tourism revenue. In August 2020, the organisation detailed a record net benefit of 2.3 billion. The firm's long-term progress has been significantly hampered by this economic downturn (Salomaa et al. 2019). Worldwide, approximately 100 million people will lose out on tourism opportunities, and the anticipated data has already shown that the tourism industry will lose a lot of jobs.

Currently, TUI Group has around £900 million in loan reserves. TUI Group is confronted with a challenge that impedes revenue growth as a result of this limitation on holiday bookings (Salomaa et al. 2019). The travel and tourism industry is also negatively impacted by the TUI Group's dealings with geopolitical uncertainty, operators with relatively high debt levels, and a lack of focus as a result of seasonal interruptions and climate change. TUI Group has also been affected in some way by those influences. One of the main threats to the TUI Group is the effect that seasonality has on the performance of "nature-based tourism" and its ongoing growth.

Critical Analysis

Patch 1: Entrepreneurial architecture

The TUI Group's crisis-driven innovation and entrepreneurial leadership

TUI Group's operations in the tourism industry are constantly impacted by external environmental factors, which is why it is critical to act quickly in response to these shifting business environmental forces. One of the best ways to make customers happy is to anticipate opportunities in the market before other companies in the industry do (Vorley and Nelles, 2012). Indeed, even in an emergency climate, TUI centres around development, new items, and new ideas in its tasks, yet the organisation's risk as far as advancement is negligible.

TUI strives to actively adapt to the shifting requirements of its customers by paying equal attention to these four perspectives on communication and innovation. Additionally, they acquire the ability to quickly identify and respond to shifting market possibilities. It creates the essential space for optimal resource allocation to innovation efforts, reorganising the next-generation portfolio (Martin et al. 2018). It also establishes a solid platform for “post-crisis development” in order to compete throughout the recovery era.

Not only must planning and human resource control be properly managed in successful leadership, but all viewpoints required to reach corporate goals must also be well-controlled, and difficulties must be successfully confronted and also well identified (Vorley and Nelles, 2012). Particularly since the business climate in which TUI works is dependent upon different emergencies because of both interior and outside factors, which influence the association as well as its clients. Because of this, a business that operates in this kind of industry needs to work together to constantly develop them without sacrificing creativity (Martin et al. 2018). However, a paradoxical scenario is evident in the current business climate. That is, numerous organisations have confronted different disappointments since they disregard their innovative capacity and face difficulties with the serious circumstances that happen during the emergency time frame (Setiawati et al. 2021). The trends that TUI can refer to when considering "crisis-driven innovation" through effective "entrepreneurial leadership" are outlined below.

1. Determining methods for encouraging employee creativity
2. Describing normal conditions and their volatility, complexity, and ambiguity using the VUCA concept
3. Ability to interpret to cultivate high-level leadership qualities and use them effectively in challenging circumstances. Giving need to developments and giving vital facilities

To encourage the followers' creative abilities, a leader should always provide the necessary direction when leading a team. In addition, changes should be made to the employees' original ideas. Even in times of crisis, such leadership makes it possible to foster creativity among employees. and benefit from their new behaviours since they can overcome obstacles by implementing organisational changes (Brighton et al. 2015). The concept of VUCA perceives that conventional leadership abilities are not fitting or adequate for each business circumstance and perceives that occasional administration changes are basic. VUCA leadership emphasises that leaders must be exceptionally adept at managing uncertainty, going beyond the conventional level of leadership (Assbeihat et al. 2016). Transformational leadership motivates individuals to actively participate in the process by focusing on instability, uncertainty, complexity, and ambiguity. On the other hand, transformational leadership focuses on vision, understanding, clarity, and agility.

Figure 1: Essence of VUCA   (Source: https://t2informatik.de)

Brought up that the convergence of new thoughts into the business should not be finished by a founder alone and development should be focused on while maintaining a business (Okechukwu et al. 2015). It has also been mentioned that, despite the fact that the leaders of a business have more mature innovation processes at the beginning of its initiation, interest in such innovation processes slows down as the business grows (Assbeihat et al. 2016). As a consequence, the innovation process should always focus on resource mobilisation and incentive alignment, and innovation implementation should be prioritised through efficient asset and resource management.

“Resource advantage theory” toward “entrepreneurial leadership”

As per the "resource-advantage theory", a resource is important to a business if it can give it a competitive advantage and provide value to customers that improve performance. According to this theory, the company requires "hard-to-imitate resources" to stay ahead of the competition and must have critical resources to gain a competitive advantage (Setiawati et al. 2021). Also, it has been expressed that for organisations to succeed, the asset of entrepreneurial power and also the necessary degree of commitment and consideration should exist. While focusing on an entrepreneurial mindset leadership, clearly the commitment of this theory is high.

Making a culture of development in the TUI Group

An innovative culture is made in a firm since there should be a suitable hierarchical environment to improve inventive abilities including new ideas and thoughts. Making and carrying out a creative culture isn't something that should be possible simultaneously. Developing innovative ideas without a supportive setting or culture is a waste of time (Brighton et al. 2015). As a result, building an atmosphere conducive to creativity in the company's internal environment is a required aspect for the continuation of innovation in any organisation (Okechukwu et al. 2015). When constructing a “culture of creative innovation”, there are a number of important considerations to make. These are as follows:

• Vision, mission, and short-term and long-term goals
• Features of the workforce
• Encompassing nature of creativity
• Administrative practices
• Motivation and encouragement in the workplace
• Organisation's available resources

By developing such an innovative culture inside the firm, TUI grows its limit with respect to emergency the board. Additionally, it improves the capacity to apply new ideas to specific crisis management issues (Abad et al. 2016). This is because, when creating an innovative culture, employees should be empowered, failing points should be understood, the best approach should be chosen as an innovation matrix, action should be taken, lessons should be learned from the past, and all benefits should be considered (Ludema and Johnson, 2019). Individuals, teams, and departments of an organisation work toward creative solutions in a creative climate to guarantee the development of a stable business operation even during a crisis. Kritikos et al. (2014) argue that moderately strong cultures help an organisation adapt to technological, administrative, and cultural changes and gain increased performance with time. That is, existing organisations' ideal strength is diminished by weak cultures. Individual freedom and accountability, full Structure, risk-taking capability, and help were shown to be substantially connected with organisational citizenship behaviours (Ludema and Johnson, 2019). Altruism, conscientiousness, sportsmanship, and courtesy are the main components of organisational citizenship behaviours, and there is a strong correlation between them and organisational culture. The most fundamental idea here is the sustainability of innovation and creativity, which states that an organisation will benefit more from maintaining innovation and creativity over time if it takes place during the cultural phase (Kritikos, 2014). This is due to the fact that the cultural level focuses on every aspect of an organisation, and even at the individual level, one has very little control over it. [Referred to Appendix 1]

Here are the critical stages to be taken to make an innovative culture at TUI. The following table provides an illustration of Teresa Amabile's comprehensive list of steps for establishing a culture of creativity.

Patch 2: Managing the change process

Constructing an innovative culture has a significant influence on the sustainability of organisational innovation success, even though the cross-cultural aspects of "change management" should not be overlooked. This is because, according to Hofstede, everything depends on the culture of the company, and changing it can lead to more common problems and big disasters. As a consequence, when making organisational changes, it is necessary to exercise greater caution in change management because there may be a variety of obstacles posed by the employees' internal and external environments (TUI Group, 2022). However, change turns out to be more troublesome as hindrances increase, and change is a priority component to keep up with competitiveness. It is important to give close consideration to the three variables of initiative culture, hierarchical construction, and rivalry to contend in a changing business climate effectively (TUI Group, 2022). When relevant variables shift or are adjusted to the organisational cultures, it should not reflect "fairness or impartiality" to any party. For sustainability, we must also maintain an inventive mindset and ensure that new ideas are consistently incorporated into the culture.

To manage the change process, TUI must adhere to several managerial practices, some of which are outlined below.

1. Guaranteeing safety in the work environment
2. Give employees and managers the chance to demonstrate new behaviours
3. Allowing employees to represent the new behaviour of managers who decide how to use business opportunities and make decisions about them (Lin and Petersen, 2013).
4. Putting an emphasis on cultivating people's work style by adding new things and teaching different ways to do things so they can reap the benefits of the changing environment
5. To guarantee that there is great correspondence between the workers of the organisation, the current communication design should not be exposed to steady changes and assuming there is a significant change, it should be carried out through everybody's mindfulness (Abad et al. 2016).
6. Implementation of a variety of incentive programs to recognize employees who successfully implement new ideas.
7. Making employees feel as though they are continuously questioning what the favourable conditions are rather than the unfavourable ones brought about by appropriate adjustments to the employees and the organisation (Lidia, 2014). This might also be published as a statement about workplace changes.

However, TUI Group is still subject to numerous regulations and rules. This corporate culture's abundance of rules, beliefs, and values is one reason that the TUI Group does not restrict its operations to a single nation and must deal with the conditions of multiple nations while maintaining global operations (Hiep et al. 2020). While rolling out related improvements, it is more useful to focus on arranging the pertinent interaction to help the workers, the business, and the clients. There ought to be no infringement of a worker's right or a client's need. For a long-term business model, relevant changes should be made regularly in response to external business changes in order for the industry to meet the increasing demands of the present. However, it is more valuable to always make changes that affect the most important factors in a meaningful way.

TUI's difficulties in maintaining the change procedure

The different testing conditions that might happen in changing the current circumstance

in any association should be visible in numerous business settings, and a few principal causal variables influence it (Lin and Petersen, 2013). Managing diverse teams, adapting to the needs of various locations, revising pertinent documentation to reflect changes, appropriate industry rules and regulations, coordinating multiple concurrent changes, not being aware of the shifting process, and having trouble obtaining the necessary approvals are all challenges.

Even if TUI Group is associated with the existing tourism industry, the effect of these factors remains the same. Because it is a company that offers tours to various nations, it is necessary to make the necessary organisational adjustments to the existing laws and regulations of each nation (Setiawati et al. 2021). Because laws and regulations differ from country to country and region to region, this is a challenging task. Additionally, it is challenging to simultaneously communicate changes to all teams because TUI Group operates within a globally distributed, complex corporate structure. Making a utilitarian construction is more important than keeping up with such a perplexing design.

Communication barriers incredibly affect making an imaginative culture as one more significant test among the principal obstructions for the TUI Group (Lidia, 2014). The high level of inconsistency and confusion among individuals has made it more difficult to coordinate and communicate. It is also evident that employees are not allowed to express their thoughts and that they are not given much attention (Hiep et al. 2020). When a situation like this arises, changing the relevant procedures is likely to be met with significant resistance from the organisation's employees. It is a challenging effort to transition personnel that is acclimated from one culture to another. Another problem here is the existence of many resistive cultures and mindsets.

Conclusion

The major aim of this report was to identify the development of different types of entrepreneurship architecture in the TUI group with the help of proper change management process culture and leadership. For achieving different types of objectives of this research, in the first stage, a critical evaluation of the overview of this organisation and the nature of the different types of tourism industry have been analysed with the help of different types of literature. It majorly focused on culture leadership and change management. It is also effective for creating a better enterprise architecture and managing the factors to be considered for completing the report in a better way. From this study, it has been identified that the cultural structure and the ship are playing a major role in this organisation to make a better decision-making process which is dependent upon opportunity and innovation that can be taken as an advantage. Innovation drivers along with the proper designing of good structure have been followed to create a relevant creative culture that provides TUI to have a better analytical observation. A clear understanding of different types of factors at the time of doing relief and changes and the overall operation of the change management opportunities are also being described in a better way that provides a huge amount of support to the organisation. However, in the end, different types of challenges create a significant impact on the organisation to face the proper transformation from existing business processes using relief and types of leadership styles and business changes in a particular business context. A proper description of the contribution of creative name generation ability can be effective in doing different types of changes in a particular domain.

Recommendations

Analysing different aspects of the report, the major facts based on the implementation of various innovative entrepreneurship architectures are creating essential factors of the innovative culture. Proper usability of the change management can be effective for moving towards sustainable access for the TUI group. This section can better implement each of the various concepts. Several major recommendations are being identified in this study. The major recommendations of this study are described below.

1. Checking the VUCA concepts, it has been identified that there are major requirements for further dependencies on the several attributes in the crisis-driven for the major innovations of the TUI. Among them, the application of the proper leadership style can be a major key that requires a suitable environment for providing the necessary facilities to develop and grow leadership skills is also at this primary stage (Kucukozyigit, 2020).
2. In a particular environment, there are different external and internal environment changes related to this particular industry in which the TUI group operates in the environment. This type of requirement is very much required for maintaining a higher level of various response intensification earlier rather than the other major rivals by changing environmental factors. Thus, as opined by Biron et al. (2021), the application of transformational leadership is the perfect one for this purpose as the transformation facilitates suiting each type of situation to be more flexible.
3. For cultivating the major success of different types of present leadership qualities of the TUI group, it is very much essential to focus on developing characteristics that should also exist in bringing out various creative ideas for the employees.
4. Instead of managing the present culture in a particular way, a suitable plan needed to be developed as per the different activities and innovative culture by adding accessories and new cultural elements to the culture. The proper presentation of the various innovative cultures can offer different solutions for changing the requirements of customers rather than managing the traditional policies and procedures (Sumarni and Kadarwati, 2020). For maintaining TUI customer satisfaction at a high level, there are major requirements that help to establish the innovative culture for achieving industry-leading performance levels.
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Appendices

Appendix 1: Culture of TUI

(Source: TUI Group, 2022)

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