Human Resource Management Report on Armani's Turkey Venture

This report provides a detailed analysis of Armani's strategic human resource management (HRM) plan for its expansion into the Turkish market. It begins with an executive summary and an introduction that outlines the report's focus. The discussion section includes a background of the company, followed by a PEST (Political, Economic, Social, and Technological) analysis of Turkey to assess the macro-environmental factors influencing Armani's business environment. The report identifies critical HR factors essential for success in Turkey. A strategic HRM plan is developed, covering evaluating current HR capacity, predicting future HR requirements, conducting a gap analysis, and formulating HR strategies, including training and development, and recruitment. The report concludes by emphasizing the importance of strategic HRM in gaining a competitive advantage. References to relevant academic sources are also included.

Running head: HUMAN RESOURCE MANAGEMENT
Human resource management
Name of the Student:
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Executive Summary
This report studies the strategic human resource management of Armani. This organization
wants to expand its business from Italy to Turkey. An effective strategic human resource
management increases the overall profitability of the respective company. A brief overview of
Armani has been provided in this particular study. In order to expand its business in Turkey,
PEST assessment has been conducted in this specific study. Critical HR factors are discussed in
this specific study. A plan on strategic human resource management of Armani has been
developed in this study.

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Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Background of the company........................................................................................................3
PEST analysis of Turkey.............................................................................................................3
Critical HR Factors......................................................................................................................5
Strategic Human Resource Management Plan............................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

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Introduction
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.
Discussion
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 (Armani.com,
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.

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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).

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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.

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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.

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

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References
Armani | Official Online Store. (2018). Armani | Official Online Store. [online] Available at:
https://www.armani.com/in/armanicom [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.