Business Development Strategies: GDPR and HR Management

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Understanding Business
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Table of Contents
Q2...............................................................................................................................................3
Q4...............................................................................................................................................5
Reference list..............................................................................................................................8
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Q2. What is GDPR and how does it impact on Businesses?
GDPR is a regulation that has been implemented in all laws across Europe and EEA region.
This regulation pertains to all fashion industries that are selling products or storing the
personal data of the citizen in EU. The GDPR full is “General Data protection Regulation”. It
means that the citizen of Europe have control over private and confidential data and
assurance that these data are protected and are not exposed. The purpose of this regulation is
to ensure secure data storage privacy as well as policies of customer while doing online
shopping in fashion industry. The implication of this regulation has both positive as well as
negative effect in fashion industries (Albrecht, 2016). These implications are
Positive implication: With the introduction of GDPR, the fashion industry as well as the
customer has some of the positive implication. These positive implication are described
below:
Improved Cyber security- Fashion Industry after the introduction of Internet has been in an
uninterrupted battle. Policy as well as security changes and security upgrades in
infrastructure, network and servers are primary source. The data privacy as well as security
standard has been directly affected by the passing of GDPR whereas it has indirectly
encouraged the fashion industry in improving and developing their cyber security measure in
order to limit the risk of potential data breach(Tankard, 2016).
Standardisation of Data privacy and protection- As mentioned above GDPR compliances
is evaluated by the agencies related to data protection and privacy from every nation. The
Europe standardisation ensures once a fashion industry is GDPR compliant, they can freely
operate in every part of the European countries without dealing with every nation’s data
protection laws.
Brand Safety- The data breaches hinder the reputation of the online fashion industry
operating internationally. The customers give importance to their privacy and their
confidence are broken if there is any breach if data occurs and their information exposed.
GDPR provide protection against the breach of data and help the fashion industry in
maintaining their Brand name (Lovell and Foy, 2018).
Customer loyalty- The fashion industries with GDPR enabled protects their customer from
data breach and exposure of private information. This helps the fashion industry in gaining
the trust of the customer and thus, helps in achieving customer loyalty.
Negative implication: Along with positive implications the GDPR do have some of the
negative implications too. Here are some of the negative implications that can affect a fashion
industry as well as their customers.
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Non- Compliance Penalties- The non-compliance cost has encourage the fashion industry to
consider their responsibility toward data protection inside Europe. The organisation has to
give a fine of 4% of annual turnover according to the non-cost compliance if it fails to protect
the information of the customer from data breach.
Cost of Compliance- The news of implementing GDPR first broke in 2018, many fashion
industry reacted by initiating an officer for data protection. This office takes responsibility to
make sure that internal policies of this fashion industry are updated and requirement of
implementing any process.
However, GDPR holds some positive implication for both customers as well as businesses of
fashion industry as the cost can accumulate quickly with unpredicted salaries being included
to the payroll.
Overregulation- New legislation is also attended by the chance of overregulation. The
customers are presented with unlimited message of consent by adding a double choice inside
a form. This new consent message allows their customer to control their connection with their
industry, giving them a power of how and who shares their personal information and data.
The aftermath of Implementation
On 25th may 2018, GDPR carve into legislation after so much discussion as well as planning.
Overall, the message of GDPR is in the favour of the consumer. This regulation allow
customer to locate who has access to their data, what is the reason of taking customers data,
where is data exactly stored and who can have access on customers data (Wachter et al.,
2018) .
While evaluation the negative as well as positive implementation of GDPR, it is clear that
GDPR serve more advantages in comparison of disadvantages. In the future year, there may a
more digital world that has more security, uniqueness, fee from unrequested mail.
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Q4. Briefly describe your ideal career in a given industry and explain the internal and
external factors that could affect your chosen career path.
Human resource Manager is a distinct function excluding the day-to-day activities or
operation of a fashion industry. Still, Human Resource manager can make difference in the
business success. A Human Resource Manager is affected by both external as well as internal
factors. The skills of HR manager includes decision making capacity, good communication,
analytical skills and disapproving thought process (Zinovieva et al., 2016) . HR manager in
future 5 years due to their experience in work and handling employees should strengthen their
engagement with employees. Engagement at recent year may be difficult but in future, it
becomes important for a HR manager to have a strong relation with their employees.
The Internal Factors
According to (Kotler and Armstrong, 2010), The Human resource Manager is affected by
internal factors which include customers, suppliers, new entry, compensation and the
competition mainly.
Compensation: The compensation of an employee’s offered by the fashion industry makes
them either leave the industry or stay. In economy of high economic rate and educated
individual, compensation rate should be less. Human Resource manager should try to attract
their candidate by offering them increased compensation so that the fashion industry does not
lose their employees to competitors. The manager should do a survey on their compensation
structure for gaining competitive strength and advantage over other industries in terms of
retaining as well as attracting their employees. The Human Resource Manager should not
offer too high compensation in order to avoid losses to the industry. The staff that have
experience and are graduated in same category of Job should be given more compensation.
Employee Relation- Human Resource Manager should consider training their employees
before giving them promotion in the case of internal promotion. They should take a record of
their retiring staffs so that an easy replacement can be done in time. Human Resource
Manager is responsible for managing the employee relation within the fashion Industry.
Customer Satisfaction- Changes in the taste and preferences of the customer should be
taken into consideration because it affects the delivery service. HR manager should hire that
staffs that has interest in satisfying the needs of the customer. Customer satisfaction can be
achieved by the continuous training as well as retraining of employees for better
performance.
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New Entrants- New entrants are new businesses that are entering into a market. These new
entrant in order to attract employees offer them a competitive salaries. HR manager should
know their new entrant and therefore, should analyse their business. This analysing of
business will help the Industry in making strategies in retaining their employees from the new
entrants (DeOrtentiis et al., 2015).
Competition- The level of competition influences the power of HR manager to select worker
who can easily meet the standard of company. The experienced employees always prefer to
work for a repudiated company. Therefore, HR manager needs to attend several trade union
fairs and advance their process of recruitment for advertising their fashion industry as well as
drawing the applicants closer.
The external Environment
The effect of external environment in a fashion industry is discussed in following points.
HR manager studies these factors as they influence the operation of the fashion industry
regardless of the point that they are outside factors.
Government interference- These factors includes funding by government, initiatives as well
as grants, political instability, relationship, tax and other factors that can directly affect the
practices of HR manager.
Level of growth- These factors include, exchange of rates, employment rate, and interest,
economic development, spending of consumer and government and more. After five years,
HR manager should seek for self development to be an emerging leader. To become an
effective leader the development is necessary and it is important for a HR manager to develop
in order to grow and adapt according to the environment
Cultural factors- These factors include religion, behaviour, lifestyle, education qualification,
ethics and culture. Any changes made on these factors can have great influence in the product
demand as well as workforce availability of the fashion industry. Understanding these factors
can help HR manager in putting a culture in fashion industry that can mix with its social
environment.
Technological advancement - These factors include researches, technological advancement
and innovation, intellectual capacity and purchasing power. All these factors affect the
operation of HR manager. The changes in technological advancement can lead to the changes
in the structure and policies of Human resource (Bouazza et al., 2018).
Environment - These factors includes changes in climate, global warming, pollution and
recycling. HR manager should consider these factors before making expansion of their
business internationally.
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Law and legislation: These factors consist of health, competition, regulation and trading
from legal firm. These factors directly affect the business. HR manager should operate their
business according to the law and should always stay updated on these legal changes (Noe et
al., 2017).
Thus, the HR manager in future years should be capable of improving the management of
people. At first managing each people in an organisation may be difficult but after giving five
years to an industry it is expected from a HR manager that he/she will expertise its skills of
managing people.
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Reference list
Albrecht, J.P., 2016. How the GDPR will change the world. Eur. Data Prot. L. Rev., 2, p.287.
Bouazza, A.B., Ardjouman, D. and Abada, O., 2015. Establishing the factors affecting the
growth of small and medium-sized enterprises in Algeria. American International journal of
Social science, 4(2), pp.101-115.
DeOrtentiis, P.S., Van Iddekinge, C.H., Ployhart, R.E. and Heetderks, T.D., 2018. Build or
buy? The individual and unit-level performance of internally versus externally selected
managers over time. Journal of Applied Psychology, 103(8), p.916.
Kotler, P. and Armstrong, G., 2010. Principles of marketing. Pearson education.
Lovell, M. and Foy, M.A., 2018. General Data Protection Regulation May 2018 (GDPR)
How does it affect us?. Bone & Joint 360, 7(4), pp.41-42.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Tankard, C., 2016. What the GDPR means for businesses. Network Security, 2016(6), pp.5-8.
Wachter, S., Mittelstadt, B. and Russell, C., 2017. Counterfactual explanations without
opening the black box: Automated decisions and the GDPR. Harvard Journal of Law &
Technology, 31(2), p.2018.
Zinovieva, C.G., Kuznetsova, M.V., Dorfman, T.V., Limarev, P.V. and Limareva, J.A., 2016.
Study of external and internal factors affecting enterprise’s stability. Advances in Systems
Science and Applications, 16(1), pp.62-71.
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