• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Constraints a Fit - for - Life will face.

Extracts from this document...

Introduction

Constraints a Fit - for - Life will face Constraints are the factors that affect the running of a business by restricting the business from reaching its full potential (reaching goal and targets/ aims and objectives it has set itself). There are two types of constraints internal and external. Internal constraints originate from the business itself such as from staff. Internal constraints unlike external constraints can be controlled and managed as they come from within the company. External constraints come from outside of the business they hinder the business from reaching its full potential. External constraints can not be controlled or managed, as the problems do not arise from within the business. The types of internal constraints a business might face include, Finance, Staffing, Size of Premises and Equipment and technology. Financial problems can stop businesses from completing their aims and objectives. Finance is an important issue to help businesses succeed in all aspects of their company. Without finance the business would not be able to pay for bills, supplies and many other things. All businesses have accounts in a bank. The cash in the account is used to pay the businesses day-to-day bills by cheque. ...read more.

Middle

The buildings the companies own may not be big enough as it would have expanded. Fit - for - Life will have to consider building new shops to allocate all of their products within the store, they may also think of making a department within a store. Building new shops and expanding (on the whole) will cost money. For the products to be made new equipment and technology may have to be introduced. To make better use of time and to gain the best quality in products a new line of technology will probably have to be installed. Fit - for - Life might consider using CAD and CAM technology, they will also need to use and make new shop fittings. Installing new equipment and technology will cost money o make or buy but it will also mean that staff will have to be trained in using them. Fit - for - Life will also face a series of external constraints that can not be changed by them. Firstly they will face competition from other sports companies, like JJB, JD and First Sport. In order for them to gain the most amount of customers they need to ensure that their prices are of reasonable price and are competitive, the staff are helpful and kind and that they offer the latest in designer goods. ...read more.

Conclusion

Another constraint that Fit - for - Life will face is Government Taxation Policies. The government taxation policies include VAT, Income Tax, National Insurance and Corporation Tax. VAT (Value Added Tax) is at 17.5% but was originally 12%. This tells us that there was an increase in VAT. Therefore VAT could increase at any point chosen by the government. Income Tax is another tax charged by the government. The employer must deduct some of the employee's pay to send to the Inland Revenue (the department responsible for collecting Income Tax). For workers to receive state benefits, such as state retirement pension deductions from pay have to be given to the government. These taxes can not be avoided and businesses would be very concerned over an increase in VAT. If VAT was to be increased people's income goes down, meaning that the disposable income of people would also go down. Thus resulting in the public spending less money on luxury goods but the little money they have will be spent on essentials. The skiing sportswear industry can lose money as people will stop going on ski holidays and then they will have no need to buy ski clothes. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. I have selected a nursery because there is high demand in the UK as ...

    SWOT Analysis This method is used to find Strengths, Weekness, Opportunities and Threats within my business. Futhermore I can see which areas are doing well and where improvements can be made. It also allows me to hunt for nay opportunities that may be around.

  2. Ao1 : aims and objectives

    In order for the newsagent to become even more successful or just remain having a constant amount of customers their aims and objectives need to be met on time and are achieved they may need to do this by the following methods: * Invest in a computer; to digitally record progress of the shops income and outcome.

  1. Businesses and taxation

    Another possible route to growth is for a business to change its ownership structure e.g. by becoming a company or a limited partnership. In the UK, large numbers of small enterprises operate as sole traders (one owner), or ordinary partnerships (small number of partners).

  2. Business Report on Manchester Airport PLC.

    4.3 Organisational Functions This section deals with The Value Chain, where I will explain Porters concept of the value chain and added value, Functions at Manchester Airport, where I will be identifying and summarising the role of the key functions performed at Manchester airport, Combining the functions, where I will

  1. Businesses in the 21st century face new challenges- How should they react to this?

    That will sorely test the ability of company's CEO to think on their feet and to assess risk. Moreover, finance functions like accounts payable and auditing will be outsourced, as will the bulk of a company's software hosting. The best businesses will be those that move the fastest, continually reinventing

  2. What constraints do business managers in (your) society face, or are likely to face, ...

    For tax evasion, a company might as well ask their accountant to rearrange figures to show less profit or even a loss. The accountant in turn gets a reward to keep it to themselves. This promotes the employees unethical behavior.

  1. Analysing various company bills.

    There is also a line spacing between each paragraph in the information at the side of the bill. * The addresses and telephone numbers are positioned at the top of the bill. The main information is then positioned in the centre of the bill and then the information about the future is positioned at the side of the bill.

  2. Can Maslow's Hierarchy be applied to the self-employed?

    higher levels of the hierarchy, so running a self-employed company was the next step in attaining higher levels within the hierarchy and therefore increasing this persons motivation From examining my questions we will find out why these two people became self-employed.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work