Introduction
The definition of the business environment includes all possible internal and external factors as a set that affect the corporation. External factors include economic factors since each corporation needs to adapt to a recession or decline in the economy. Another factor is the legal one since when government officials change, the policy for businesses often changes. Additionally, technological and demographic factors have an external impact on business.
Discussion
Technological factors allow the business to develop faster, and demographics to adjust products to the needs of buyers. Internal business factors are determined by the value system, corporate culture, working atmosphere, and the quality of human resources. All organizations have a value system, which allows the company to systematize its offerings. The corporate culture gives employees a sense of comfort, the working atmosphere allows them to increase their productivity, and the quality of human resources determines efficiency.
Market segmentation is the process by which potential customers can be divided into groups according to their similar wants and needs. One common form of this system is demographic segmentation, which considers the needs of people in accordance with age, race, religion, etc. Behavioral segmentation allows a company to create messages that match the actions of buyers, including their actions on the site, the benefits sought, and the usage rate. Geographic segmentation aims to better understand the needs of the client depending on the region. Psychographic segmentation reflects complex observations and provides valuable information about the lifestyle, interests, and values of potential buyers.
SWOT analysis is a system through which a company can evaluate external and internal factors that affect the development of an organization or a product on the market. This helps the corporation to eliminate weaknesses and develop business goals and strategies, which are inherent advantages. However, the limitations are that the analysis cannot provide solutions to problems and provides a wealth of information, of which not all of the data is useful.
The budget is a set of those incomes and expenses that a corporation has for a certain period of time and can be reassessed due to various factors. The obvious benefits of budgeting include providing targets for growth and improving audience focus based on various metrics. Moreover, competent budgeting allows you to manage cash flow more effectively, track progress in the company, and establish a more rational allocation of resources.
As a rule, tangible goods are physically tangible things, such as necessary equipment, a building, etc. Intangible assets include intangible creatures such as trademarks or goodwill built by a corporation. The five most important metrics for a business and tracking its performance are speed, reliability, product and service quality, flexibility, and cost. This allows you to have a significant impact on the productivity of the corporation and its successful operation.
Motivation is an internal or external impulse to act in order to achieve some result. Maslow identifies 5 levels of the hierarchy of human needs that affect motivation. The main role is played by the satisfaction of physical needs, that is, sleep and hunger. This is followed by a sense of security from possible dangers, after which social belonging is noted. The last two levels reflect recognition and respect in a social group and self-realization of a person as an individual.
Conclusion
HRM stands for human resource management and includes the recruitment and management practices among all workers in a particular organization. The factors that affect HRM are different and one of them is the adoption of technology. Since there are many platforms in the modern world to simplify the recruitment process, the productivity and efficiency of personnel management increases. The availability of good talents that are available in the labor market has an impact on the speed of selection. Training and development within the company help the organization to find more qualified personnel with the right set of skills. Government regulations impose standards that a company must meet, which takes time to change hiring policies. In addition, the company must take into account the economic conditions and make a plan to retain employees in case the situation deteriorates.