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Implications Strategic Resource Management

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This report focusses on strategic human resource management of Armani.  This company wants to expand its business in fashion market of Turkey. This study focusses on the macro-environmental factors which influences the business environment of Armani are briefly discussed in this particular study. The critical HR factors are discussed in this particular study. Apart from this, a strategic human resource management plan on Armani has been developed in this specific study.

Background of the company

Armani is one of the leading fashion house of Italy. It designs, produces, distributes as well as retails diverse range of goods like ready-to-wear, leather goods, watches, shoes, jewelry, accessories, cosmetics as well as accessories. This company was founded in 1975. It is a private company. The headquarter of this fashion house is located at Milan, Italy. According to 2016 statistics, approximately $2.65 billion sales was done by this company. This company works in partnership with Emaar Properties and it conducts its business in many big cities like Milan, Paris, London, Los Angeles, Hong Kong, Shanghai, Seoul, Tokyo and Dubai (, 2018).

PEST analysis of Turkey

In order to conduct business in Turkey, it is required for the management of Armani brand to understand the political factors social factors, economic factors and technological factors.

Political factors:

This nation is a promoter of liberalization. It is seen that open trade is allowed among various member nations of European Union (EU). It should be noted that several terrorist attacks had occurred in this country because of Islamic extremist, Turkish millitants, which are well-connected with Al-Qaeda. This might discourage the investors of Armani to initiate its business activities at Turkey. It has been noticed that export is increasing at the rate of 10% per year thereby creating a scope for Armani to enter Turkey for continuing its business operations (Brewster, 2017). As per the regulations of OHS, it is the responsibility of Armani’s owners to check the workstations; they are bound to evaluate the risks as well as plan prevention measures that are applied in the working environment for improving the working conditions of the respective organisations. As per the labor law of Italy, about 95% labors are covered by the collective agreement.

Economic factors:

Fiscal as well as monetory policies facilitate financial stability in Turkey. High inflow of the foreign investment and free trade agreement are the key factors that allows the company to finalize their decision of investing capital in Turkey’s fashion market. Moreover, it has been observed that labor market of Turkey is quite rigid in comparison with global standards. Current account deficit has made this nation more vulnerable during global financial crisis. These factors should be considered by Armani’s managers (Hollenbeck and Jamieson, 2015).

Social factors:

Unemployment rate is quite high in Turkey. It has been noticed that majority of the population is aged under 30 years. There is a scope for Turkey to reduce the high unemployment rate by employing young people aged under 30 years. In order to expand its business, the management of the respective company needs to consider these social factors. It has been noticed that Turkish women prefers to follow tesettür style at public places. It is seen that some women wear headscarf as well as long and light overcoat which covers the arms as well as legs of women. It is seen that women also wear burkha. It has been observed that some women follow European-style secular garments. They wear casual garments and sleeved summer clothes. Turkish men prefers to dress conservatively. In order to enter into the market of Turkey, the managers need to follow European-secular style and tesettür style for men and women. They need to manufacture totally covered garments for men.


Technological factors:

It has been observed that rapid expansion of ICT market has taken place in Turkey. It has been noticed that telecommunication industry is growing because of liberalisation of the existing market. Therefore, the managers of Armani should consider these factors.

Critical HR Factors

It is required for the managers of Armani to possess in-depth fashion industry-related knowledge in order to capture a larger market share in Turkey. Armstrong and Taylor (2014) commented that it is very important for the HR managers of Armani to undertake important business decisions without any hesitation.

Strategic Human Resource Management Plan

Evaluating the present HR capacity:

It is seen that current capacity is about 15 staffs. Good communication skills are required for these staff members. Skill catalogs need to be prepared for this staffs.

Predicting HR requirements:

There is a requirement of 6 staffs with a background of MBA in Executive HR.  These people should have at least 2 years work experience in this field. These staffs should be capable enough to increase the workflow of the respective company.

Gap analysis:

Presently, the organization is running short of sales managers. At least 4 sales managers are required for meeting the sales target of US$2 million within1 year.

Formulating HR strategies:

Training and development strategies:

On-job training will be provided to every employees of the respective company.

Recruitment strategies:

At least 10 sales personnel, 3 marketing managers will be hired for meeting company’s target of increasing 10% profitability within 6 months.


Therefore, it can be concluded that strategic human resource management aids the company to gain competitive advantage in the existing market.



Armani | Official Online Store. (2018). Armani | Official Online Store. [online] Available at: [Accessed 6 May 2018].

Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Brewster, C., 2017. The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.

Hollenbeck, J.R. and Jamieson, B.B., 2015. Human capital, social capital, and social network analysis: Implications for strategic human resource management. The Academy of Management Perspectives, 29(3), pp.370-385

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