Business Issues, HR Context and Strategic Analysis: Heritage Textiles

This report examines the business issues and HR context of Heritage Textiles, a textile industry company. It begins with an introduction to the company and its challenges, followed by an analysis of factors affecting the organization and its HR function using SWOT and PESTLE analyses. The report then explores the key forces influencing the HR agenda and outlines the key stages of strategy formulation and implementation, detailing the role of HR in each stage and its contribution to business ethics. Furthermore, the report discusses business performance tools, particularly the Triple Bottom Line, and the role of HR in business planning and change management. It also analyzes the impact of economic, technological, environmental, and social factors on the HR function. The report concludes with recommendations for the company, addressing areas where the business needs to focus. The analysis uses business and contextual data, offering insights into how Heritage Textiles can improve its performance and adapt to changes within the industry.

Business issues and the
contexts of HR CHR

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
FACTORS AFFECTING AN ORGANIZATION & HR FUNCTION..........................................3
Comparing minimum of two different tools................................................................................3
Identifying four different external factors and discuss their impact............................................4
Explaining how each of these factors impact on the organization's HR function.......................5
Analysing key forces which influence the HR agenda................................................................5
ORGANIZATIONAL AND HR STRATEGY & PRACTICE.......................................................6
Key stages of strategy formulation and implementation using models.......................................6
Role of HR in Key stages.............................................................................................................6
HR Contribution to business ethics with example.......................................................................7
RESPONDING TO CHANGE........................................................................................................7
Using business performance tool to analyse performance of company.......................................7
Role of HR in business planning.................................................................................................8
Role of HR in change management.............................................................................................8
Business and contextual data use for business planning..............................................................8
Three areas business need to focus by using two data sources....................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business issues are the issues that used to affect the work and profitability of the
company. The current assignment is based on the Heritage Textiles which is the textile industry.
The report will outline the SWOT and PESTLE analysis of business environment and will also
discuss its impact on the organizational practice. Further this report will outline the factors have
impact on HR function of the company and key forces which influences HR agenda. This report
will also outline the key stages to have strategy formulation and implementation and HR
contribution to the business ethics. Further more this report will outline the business
performance tool to evaluate business performance and role of HR in business planning. This
report will further outline the role of HR in change management and recommendations to the
company.
FACTORS AFFECTING AN ORGANIZATION & HR FUNCTION
Comparing minimum of two different tools
SWOT analysis is tool that is used for planning strategic management techniques within
the workplace through closely identifying strengths and weakness existing within the
organization along with analysing possible future threats and opportunities that would help them
the firm to prepare fully (Harika and et.al., 2021). Moreover, on the other hand PESTLE analysis
is one framework that describes about certain macro-environmental factors that needs to be
considered while planning any kind of the strategic management for future.
Also, when comparing the two in detail it can be said that is broader and helpful to
produce SWOT. Furthermore, PEST analysis is not helpful when the company needs to identify
certain internal factors and impact on the business. Also, through SWOT analysis the firm would
be able to take certain measures to control negative impact of internal factors while in PEST it is
not possible to do so external environment might only be monitored but not completely removed
form the business (Ilyas, 2018.). Moreover, SWOT analysis might be proved sometimes
ineffective to the firm when the organization had conducted in any form baisness. Also, when
comparing to the PESTLE it can be said that if the true and accurate information of external
environment is not gathered than effects on the organization might be made worse. However,
both SWOT or PESTLE analysis might be effectively used for any kind of strategy formulation.
Furthermore, the both the analysis are used for developing the best strategic plan so that various
risks might be minimized for the future.

Identifying four different external factors and discuss their impact.
The four internal factors that would impact the current working of Heritage Textiles are
as follows:
Economical: Various factors such as unemployment rate, inflation various import export
restrictions etc. would negatively impact the working of Heritage Textiles. Furthermore, with
current Covid situations it can be said that the business would not be able to hire the qualified
individuals that are able to carry out the specialized task within the business thus creating
negative impact on the working (Sharma, Jha and Singh, 2021). Further, in the context of various
import and export restrictions in other parts of the country this would negatively affect the
success of the firm.
Technological: The heritage Textiles need to install the latest tools and technology
within the workplace so that it is able to sustain in the market for longer durations (Ivanova and
et.al., 2019,). Also, through latest technology the firm would be able to produce large number of
products and increase the current working efficiency in the long run.
Environmental: In the current era most of the people are concern towards protecting the
environment and is against the use of various harmful products that are not sustainable and is
causing wastage of resources. Further, to reduce negative impact heritage Textiles need to adopt
techniques within the workplace such as use of the best delivery methods to provide goods to the
consumer, less use of natural resources, use of sustainable energy saving methods etc. so that it is
able to operate effectively.
Social: People trends and beliefs vary on the large scale and hence it is very essential for
the heritage Textiles to conduct the production based on taste and preferences. Also, for the
positive impact and increase in the sales of the business it is important that timely feedbacks
form the employees are taken so that changes might be than made accordingly to avoid future
losses.
Explaining how each of these factors impact on the organization's HR function.
For above PESTLE factors in heritage Textiles it can be said that the HR function is
affected in following manner :
Economical: In the current era there are various changes such as relating to globalization
and the more of remote working (PESTEL Analysis, 2022). Hence, it is essential for HR
department to analyse such changes on timely manner so that company valuable time and cost is

saved. Also, if heritage hire new employees within the workplace than HR function is increased
to train such employees' so that they are able to carry out certain work in the best manner.
Technological: HR function of heritage Textiles through technology would be able to
ensure there is fast and secure emails are sent to the large number of employee's at the same
time. Thus, it is the quick source of communication in times of emergency. Further, information
overload would not be faced through technology to HR at lot of data might be accessed anytime
and anywhere.
Environmental: HR department of the company does not now require much of the
paperwork as the paperwork is digitally managed (Sithambaram, Nasir and Ahmad, 2021). Also,
more of the remote workers approved by the HR means that there would be less pollution at the
workplace that is positive factor for the growth of the firm in the coming years.
Social: With the availability of the various productivity tools HR would be able to
manage the large number of people working from the remote locations. Also, major HR function
is that company does have to struggle for ensuring employee rights and hence equal rights and
right wages are been provided to culturally different people based on the job roles.
Analysing key forces which influence the HR agenda
There are various key forces such as labour market, skills shortage, social inequality and
much more that influences the current HR agenda of the heritage textiles some of them are
briefly described as follows:
Supply and demand: HR function need to assure that all activities that are conducted in
the workplace are on the basis of the supply and demand in the market so that company does not
waste on unnecessary resources. Furthermore, supply and demand will allow HR to develop the
policies and strategies so that employees are able to work accordingly in efficient manner.
Employment law: HR is influenced with the new laws that are developed in the country
on regularly manner as based on these the minimum working hour, daily wages, working hours
etc. are decided.
ORGANIZATIONAL AND HR STRATEGY & PRACTICE
Key stages of strategy formulation and implementation using models
Strategic management refers to the process which helps the company in order to set
goals, procedures and objectives to make the company more competitive. The key stages of the
strategy formulation and implementation is as described below:

1. Determine objectives: In order to formulate the strategy it is very important for
the company to determine the organizational goals (Correani and et.al., 2020).
While determining the objective and formulating those Heritage Textiles must
consider the time period. The company can use the linear strategy model that
helps them to have the focus on the organizational goals and have good strategic
management.
2. Dividing plans: After determining the objectives the company must divide the
work into order to have the best performance. This will helps the company to
have better formulate the strategy.
3. Implement the plan/ strategy: By implementing the strategy it will help the
company to analyse the performance. This will make the company to have the
performance analysis and makes them to have the best implementation of strategy
(Horak and et.al., 2022). By using the adaptive strategy model the company can
adapt the strategy and implement those in the company.
Role of HR in Key stages
The HR of the company has the key role in order to have the strategy formulation and
implementation of those strategies in the company. HR of the company are meant to check the
corporate, unit or functional level strategies that helps to have the smooth functioning in the
market. The HR of the Heritage Textiles must be known about the various strategies that the
company used to implement at the different levels. This used to create the positive environment
in the company as HR will recruit and select the employees accordingly. This will help the
company to set the culture in such a manner that used to have the proper implementation of the
strategy (Fenech, Baguant and Ivanov, 2019). As HR used to define the employee as an
important asset of the organization which helps them to have success. The HR of the cited
organization helps them to have the performance appraisal, proper staff, provide the training and
development to have proper formulation of strategy. They used to have their contribution in
determining the goals and implementing the strategies to achieve objectives.
HR Contribution to business ethics with example
HR is the main source of the company that helps them to have the right people for the
right job. The business ethics refers to the study of the policies and practices of business that

helps them to have the proper management of the work. HR of the Heritage Textile used to play
an important role in the monitoring the culture and ethics of the organization. They must ensure
that the selection of the leadership and development process must be appropriate. They used to
contribute by recruiting the best and right employees that used to follow the business ethics of
the company (De Stefano, Bagdadli and Camuffo, 2018). It is the prime duty of Human
Resources that they must maintain the ethical integrity. This is must be done when the leaders
decisions used to affect the people in the organization. For example, Heritage Textiles HR must
have the contribution in the business ethics and practices that helps the employees to have the
good productivity in the company. This is one of the best way in order to have the good ethical
practices in the company's culture and helps in promoting accountability.
RESPONDING TO CHANGE
Using business performance tool to analyse performance of company
The business performance of the company is must as it helps them to determine the
position where they stand in the market (GS and et.al., 2019). The performance of the Heritage
Textiles can be analysed by using the Triple Bottom Line. This refers to the business concept
that helps the company to measure its social and environmental impact by including the financial
performance. It consists of 3 P's that is profit, people and planet that helps the cited organization
to analyse its performance in the market. By having the strategic planning it helps the company
to generate and maximize the profits. It is very important for the company to determine
difference between the shareholders and stake holder's that help them to know about the people
in the market. As from them the company can take feedback and measure the performance (Shad
and et.al.,2019). As it is the textile industry it must have the better production in order to have
positive performance in the market. The last component of the tool is planet that helps the
company to know about the changes in the market. This is the important tool that will help the
business to have focus on the profits of the company and to enhance the organizational
performance.
Role of HR in business planning
In the business planning, the HR of the company used to help them in order to have better
planning. The professionals in the HR used to set the values, mission, vision of the company by
following the proper strategy. The HR of the Heritage Textiles must take the responsibility in
order to make the employees to develop their skills and competencies in order to have better

business planning. They used to take full responsibility of connecting the people and their ideas
in order to have better planning and good profitability in the company. By using the HR in the
business planning helps the company to have growth in their staff, builds the team loyalty and
helps them to find the new recruitments required by the company (Nizamidou, Vouzas and
Gotzamani, 2019). By having the proper planning it helps the HR to know about the skills gaps
and helps them to fill those gaps by conducting training and development programme.
Role of HR in change management
The Human Resources as the change agent in the company used to play an important role
in order to have the successful change in the company. They must ensure that the change adopted
by them must have the desired outcome in the future. The HR of the cited company can become
the advocate for the employees and helps them to adopt the change that is beneficial for the
company. They also used to provide the training to the employees in order to support the goals
and objectives of the business. By having the change in the above cited company helps the HR to
recruit the employees accordingly that helps them to work in change environment. The HR of the
company used to provide the important information to the company that helps them to have the
good change management. This makes the company to have the proper communication while
having the changes and used to provide the special support whenever needed by the company.
Business and contextual data use for business planning
There are various sources of business and contextual data that can be used by the
business that helps them to have good research of market and predictions. The company can take
the contextual data from the various sources that includes the business information, educational
history, health background, external environment and various other factors. By taking the data
from the various other sources helps them to have the proper business planning by considering
the factors and data (Gherhes, Vorley and Brooks, 2020). The company can also assess the data
by having the information of the industry, trends in Human resources, information of the
government, employee retention and turnover in the company, etc. By using the different
company information helps the company to know about its profitability and productivity. This
will help the company to make the business plan by considering the information of the other
companies.

Three areas business need to focus by using two data sources
There are some areas that the company must focus on in order to have good profitability
in the market which is described below:
1. The company must focus on the innovation which makes the company to go with
the changing trend in the market (Ortiz-Villajos and Sotoca, 2018). In order to
improve this is the company can take the industry information and trends which
helps them to know about the changes in the market.
2. The another area that the company must focus on is to provide the training and
development to the company. This will helps the company to have the high
employee retention and turnover and makes the company to grow in the market.
By taking the information from the other company helps the employees to know
about the new and innovative ways in order to implement the strategy in the
market.
3. It is also suggested to the company that they must have the proper communication
in the workplace that makes the employees to know about the changes adopted by
company. This will make the employees to know about the information related to
industry and government.
CONCLUSION
From the above report it is evaluated about the SWOT and PESTLE analysis in order to
check business environment and will also discuss its impact on the organizational practice.
Further this report has evaluated about the factors that have impact on HR function of the
company and key forces which affects HR agenda. This report has also evaluated about the key
stages to have strategy formulation and implementation and HR contribution to the business
ethics. Further more this assignment has also put the focus on the business performance tool to
evaluate business performance and role of HR in business planning. This report describe about
the role of HR in change management and recommendations to the organization.

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