Issues that Impacts on Human Resource Management Term Paper

Issues that Impacts on Human Resource Management - Term Paper Example Political factors can have a major bearing upon a business organization to efficiently coordinate its number of vital operations. Political disturbances and imbalances, along with strict governmental regulations can also impact the HRM functions of Foster’s by a considerable extent to efficiently manage its business operations in Australia (Oxford University Press 2007). In relation to identifying the major issue within the dimension of the political factor that can impact the HRM performances, it is apparent that Foster’s can face challenges concerning the country’s human resource policies relating to wage structure, compensation policies and working hours among others. Moreover, the changing governmental regulations can also create an impact on the organization to efficiently perform its HRM policies and practices within Australia. However, the present democratic and political stability of Australia is significantly influencing foreign marketers to efficiently operate their range of business activities. Consequently, effective and well-built HR regulations of the country apparently provide opportunities for the modern organizations to comply with their existing HRM functions within the nation (National Sothertons Group Pty Ltd 2010). The economic factors as a part of the PESTLE analysis refer to the various aspects related to economic stability of the host or operational country such as interest rates portfolio, taxation programs, exchange and inflation rates, economic growth according to Gross Domestic Product (GDP) rates and other economic constraints (Chernev & Kotler 2008). In accordance with the economic condition of Australia, it is recognized that the country has been achieving its continuous economic development through its range of governmental and non-governmental business industries. Moreover, the country is also witnessing continuous growth in terms of its employment rate which has been identified to be quite strong as it recorded a growth of 1.2% in between the period of February 2012 to February 2013 (Australian Bureau of Statistics 2013).

Strategic Management and Marketing for the Luxury Goods Vivienne Assignment

Strategic Management and Marketing for the Luxury Goods Vivienne Westwood - Assignment Example In such context, Luxury Goods Company Vivienne Westwood has been selected sample organization in the paper and study will conduct marketing audit in order to help the sample organization to decide marketing strategy. McDonald and Wilson (2011) suggested that organizations should use both strategic and tactical marketing plan in order design marketing strategy. According to these scholars, strategic marketing includes situational analysis, customer segmentation, and macro environmental audit while tactical marketing plan includes implementation marketing strategies. The paper will follow the mentioned approach while doing marketing audit for Vivienne Westwood. Before going to the main discussion, the study will analyze the business situation and macro environment for Vivienne Westwood in order to create background for marketing audit. Situational Analysis There is no doubt that primary operational hub for Vivienne Westwood is UK and therefore the study will concentrate on macro enviro nmental parameters of UK which can influence business dimensions of Vivienne Westwood. ... ion in UK (British Fashion Council, 2012) The above diagram is showing the rise of luxury consumption expenditure in UK while the following diagram will depict the structure of designer and luxury fashion industry in UK. Figure 2: Industry Structure (British Fashion Council, 2012) It is evident from the diagram that retail luxury clothing and footwear are the primary revenue generating option for designers like Vivienne Westwood, Paul Smith, Burberry, Stella McCartney, Mulberry etc. In such context, PEST (Political, economic, social and technological) analysis can be done in order to understand macro environmental aspects of UK. Political Government of UK follows trade policy as directed in NATO or North Atlantic Treaty Organization. However, in recent years the UK government has taken steps as budget cuts (more than 20%) in entertainment, fashion and sports sector which negatively affected growth of fashion and designer merchandises manufacturing sector (British Fashion Council, 201 2). The government has also reduced corporate tax to 23% and such reduction would bound to increase operating margin for fashion retailers like Vivienne Westwood, Paul Smith, Burberry and others. Economic Spending capacity of people is being negatively affected by the trailing effect of Economic recession started in 2008 and Sovereign debt crisis. For example, the industry growth has been dipped by almost 0.2% in recent years (Marketline, 2012). However, British Fashion Council (2012) reported that economic slowdown might have increased cost of manufacturing for luxury retailers like Vivienne Westwood, Paul Smith, Burberry and others but it has hardly any impact on luxury consumption in UK. This divergence occurs due to the fact that generally affluent class purchases luxury products and