The Potential Contributions of Human Resource Case Study

The Potential Contributions of Human Resource - Case Study Example British Airways also supports other additional jobs through its supply chain, and all this generates annual revenues of approximately 7.8 billion (Whitelegg 2000, BA 2005). British Airways contributes to economic growth in the UK as it is part of a transport infrastructure on which many other parts of the economy depends on. For example, better transport links between cities have expanded markets, allowing for economies of scale, increased specialisation in areas of competitive advantage and stiffer competitive pressures on companies (OEF 1999, Whitelegg 2000). This also means that British Airways supports foreign direct investment into the United Kingdom and this introduces new technology into the country, as well as improves networking to bring on more innovation (OEF 1999). As with any other industry, the key challenge facing British Airways is future growth and development, especially in light of low-cost airlines and climate change. Despite the impressive record of consistently delivering improvements in energy efficiency, British Airways is once again faced with a multitude of environmental and other factors, which could potentially erode its human resource based, which it has created. In order to understand the potential contributions British Airways makes to the human resource function, it is important to conduct environmental and internal analyses. II. PESTLE Analysis II. i. Political This airline industry is heavily subsidized, however the high cost of labour in the UK has made British Airways look at more cost effective ways of creating jobs, such as automated ticket machines and check-in machines. At the same time the construction of Heathrow Terminal 5 exists to meet the rising demand, which puts pressure on the government in terms of planning, and allocating more runway space in other areas of the country. The conflict in the Middle East has also meant increased fees for flying with British Airways to cover the cost of fuel price increases, which could cost the organization dearly. II. ii. Economic The crisis in the Middle East has resulted in reduced passenger numbers for some routes, and whilst it may not affect all of British Airways routes, a reduction in passenger numbers means significant losses in terms of profit. If passenger growth falls at 3.5% per year instead of the predicted 4%, the UK's GDP would be reduced by 2.5% by 2015 or the equivalent of 30 billion (OEF 1999, BA 2005). In 1997 UK travelers abroad spent 13.4 billion and foreign travelers to the UK spent 9.9 billion (OEF 1999), therefore the importance of the economy cannot be downplayed. II. iii. Social There has been an increase in recreational flyers, or the use of private airplanes, since September, 11th and this has affect passenger numbers slightly (BA 2005). This is also due to the rise of disposable income and specialization of leisure pursuits at small air fields and air

Motives of and challenges for the corporate expansion and emergence Essay

Motives of and challenges for the corporate expansion and emergence - Essay Example For example, Starbucks is one of the big business tycoons in America which have thousands of outlets across the country. They have coffee shops in each and every corner of America and the competition from the competitors is increasing day by day. It is difficult for them to expand their business in America because of the saturation they have already attained and internationalization of the business seems to be the only option left for them. On the other hand the intrusion of the corporate companies has made the things worst for the small scale and medium scale business groups. Big business tycoons with their immense financial capabilities and innovative business strategies have conquered the markets of the small and medium business groups. It is difficult for the small and medium business entities to fight or compete with the multinational corporate companies and acquiring strength through mergers or acquisition is the only way ahead of them to stay in the market. welcoming Foreign Direct Investment (FDI) to their country by liberalizing the rules for the foreign Corporate Company’s entry into their country. Moreover the cultural adaptation of the business in a foreign country seems to be difficult one for the international companies. Thus expansion and emergence is a difficult task both in domestic circuit and international circuit. This paper briefly explains the expansion and emergence of companies through mergers and acquisition and strategies and challenges for merger and acquisition process. Mergers and Acquisition is a common phenomenon in international business circuit at present because of the steep global economic recess. Even survival seems to be difficult irrespective of big or small companies. Financial institutions like Lehman Brothers and automobile manufacturers like GM have suffered severe setbacks and they have no other way, but to think in