TUI Group Environmental Essay Example | Topics and Well Written Essays - 1000 words

TUI Group Environmental - Essay Example Established in 1997 the company has expanded its operations in tourism to emerge as the market leader globally (TUI AG, 2015). The company has invested in three business portfolio; TUI Hotels and Resorts, TUI travel and the cruise ship venture. TUI has strong portfolio comprising of over 1,800 travel agencies, 300 Hotels, 13 cruise liners, 130 aircrafts, six airlines, etc. The company recorded turnover of â‚ ¬18.7 billion in 2013/1014 financial year (TUI AG, 2015). TUI operates in more than 180 regions with over 30 million clients. The company’s shares trade on London Stock Exchange (FTSE) and in Frankfurt Stock Market. TUI experience strong competition from Thomas Cook, First Choice Holidays, Rewe Touristik and My Travel Group. TUI’s growth strategy is to increase the number of hotels by opening more 60 hotels and purchase four new ships.Porter’s five forces analysis promotes the understanding of sources of sources of external challenges facing the industry.T he threat of new entrants: The tourism industry requires high capital and is controlled by a few market leaders. However, the possibility of entrants of low-cost airlines offers price threat to TUI. Developing of efficient rails and customers preferences for personal vehicles can have adverse effects on the company. Substitutes: The social media, TV and other social activities pose some threats of substitutes though not a perfect replacement of tourism. Also, tourism is highly undifferentiated thus there is low threat of substitute.

Devising of Optimisation Models and Modelling Systems for Supply Chain Essay

Devising of Optimisation Models and Modelling Systems for Supply Chain Planning and Management - Essay Example Supply chain misalignments, the main challenges facing today's supply chains, can be grouped into the following four major categories. Supply chain incentive misalignment characterizes the lack of consistent incentives among supply chain partners. It is well understood that different parties in the supply chain often have different incentives for doing business. They will not cooperate with their supply chain partners unless they have an incentive for doing so. Supply chain incentive misalignment is associated with two common observations in supply chain management. First is the widespread existence of conflicting objectives among the supply chain partners. For instance, suppliers typically want manufacturers to commit themselves to purchasing large quantities in stable volumes with flexible delivery dates. Unfortunately, manufacturers require just-in-time (JIT) supply in small batches from their suppliers due to changing demand and their unwillingness to hold inventories. Thus, the suppliers' goals are in direct conflict with the manufacturers' desire for inventory holding and flexibility. The otheThe other observation is the lack of shared visions (and risks) between the supply chain partners. For example, suppliers, manufacturers, and retailers often optimise their inventory levels according to their own forecast of future demand. They do not share their observation of the shifts in the marketplace. The result is high inventory costs, high response time or poor service levels. In practice, aligning supply chain incentives can be achieved through so-called performance measurement schemas (Lee and Whang, 1999, 633-40). A performance measurement schema specifies the rules such as how supply chain costs can be calculated and allocated, what service levels should be achieved by supply chain partners, and what constraints the supply chain partners should abide by. Supply chain process misalignment occurs when supply chain processes are not synchronized within or between trading partners. Efficient and effective supply chain management requires innovative enterprise and inter-enterprise breakthroughs for synchronization of supply chain processes. The critical factor behind supply chain process misalignment is the interdependency of supply chain processes. Tackling the issues of supply chain process misalignment entails determining which process does what (in the case of managerial processes, which process decides what) and which process knows what. Supply chain information misalignment occurs when information necessary to support decision-making processes is not readily available, not usable or incorrect. Although recent developments in information technology, such as the internet, enable more information to be readily available for use, supply chain information misalignment still exists due to several reasons. Firstly, the needed information