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