Resources – Human & Physical
Basing upon the factors mentioned by McGrawhill (n.d.), Thomas Cook’s resources have been identified as under:
• Specializes in the leisure travel category and is the second largest traveling agency in UK (Roberts & Barnfather, 2008).
• Physical assets include 800 stores, a fleet of forty four passenger airliners, hotels and acres of real estate all over the world, valuing 5906.8£M (Dickson, 2012 & Thomas Cook Annual Reports & Accounts, 2012).
• Employs 35,160 people and utilize extensive training programs in management, operations, administration and logistics (Roberts & Barnfather, 2008 & Thomas Cook, 2012).
Strategic Analysis of Thomas Cook
• A highly cohesive Enterprise Project Management (EPM) system, intranet, web presence and data access systems for travel agents (Microsoft, 2013 & Thomas Cook, 2012).
• Intangible assets include customer protection guarantees, dynamic packaging and brand name (Whitwell, 2012).
• Recent alliances include those with Variety Club (2004), Tri-West Travel Holdings (2008), Öger Tours GmbH (2010) and London Olympics (2012) (Thomas Cook Annual Reports & Accounts, 2012).
Financial Analysis
Analysis of the Group’s balance sheet (Thomas Cook Annual Reports & Accounts, 2012 & FT, 2013) reveals that revenues have decreased to 9,491.2£m i.e. by 3.2%. Operations generated an underlying profit of 156.1£m against 147.5£m in 2011 (Appendix – 1). The reasons of decrease in profit primarily include enhancement in fuel and hotel accommodation costs amounting to 157£m and also the restructuring, reorganization and refinancing costs amounting to 110.8£m (Appendices – 2 & 3). The total impairment of goodwill is in terms of 368.7£m owing to decrease in profitability in Canada, France and India. As far as the earnings per share and dividends are concerned, the Group suffered a basic loss of 67.2p per share and dividends were not paid at all in 2012.
Strategic Analysis of Thomas Cook
