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

Constraints that can impact on the successful implementation of a business plan

Extracts from this document...

Introduction

Constraints that can impact on the successful implementation of a business plan There are several constraints that can affect how well a business plan is implemented. The constraints that may affect the implantation of a successful business plan are; * Legal * Financial * Social * Environmental * Technological * Competitive Legal When a business is setting up a business plan it has to abide by laws to ensure that the business will not face any legal action against it. Legal changes can happen all the time over the course of a business's running. Legal changes can force the business to change the way a business operates and can have an impact on how employees have to set up rules to ensure the safety of its employees. Changes to tax laws and minimum wage can have an impact on the finance of a business. The categories that legislation changes fall into are Health and safety Health and safety can look at aspects of how the business is protected against fire and precautions that are taken for various dangers. Examples of laws that may affect these rules are food hygiene, environmental health - weights and measures. Employment law Employment laws can change the way that businesses are allowed to hire employees and regulations that they must follow to ensure that employees are chosen fairly. ...read more.

Middle

Reputation and costs will change with this judgement in choosing suppliers. Business's will often have to look at they way they market their products in accordance with the publics financial constraints. A business may wish to sell their product as being economically sound or as a luxury product as they have discovered that members of the public have the wealth to purchase them. Financial To implement a business plan with success having enough money to back up the business plans is essential in order to get your business off the ground. There are many things that can be considered as collateral, assets such as your house and car can be used as the backup strength behind your loan. Banks are more likely to provide loan services to someone who has a good credit history. Funding may not just come from external sources, funding could also come from your own savings and inheritance, this type of finance providing may be a lot safer than taking out a loan as you do not stand to lose personal assets, as you are not in debt to a bank. As part of a successful business plan, considering financial implications is vital. Looking at finance required for the start-up cost will enable you to judge how much money you are going to need for start up and running costs, a business should then consider the profit it could potentially make and then decide accurately well they are likely to succeed. ...read more.

Conclusion

Technological advances are also changing the way custom is made, many customers now opt to use the internet to buy any products as it is an easier and more convenient way to shop, in many cases the internet is also cheaper. Business's have adapted to this change by creating websites to visit and purchase items from. Competitive When setting up a business it is unlikely that you are going to have a product or service that does not already exist. When there are existing similar products to your own this is called competition. Competitors will always have an effect on how much profit your business makes. When marketing your product you must ensure that you are showing how it is better than competitors in the sense of value for money and quality. Force Entry of competitors How easy it is to enter your market? Do any barriers exist eg. Technology or expertise. Threat of substitutes How easy is it to get a similar product to ours? Are there any cheaper? Bargaining powers of suppliers How powerful are the buyers? Can they work together to buy in bulk and benefit from economies of scale? Bargaining powers of suppliers How powerful are the sellers? Are there lots of suppliers or is there a virtual monopoly? Rivalry Is there a lot of rivalry between existing businesses in this market? Is any one company dominating force or is everyone equal? ...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 Marketing & Research 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 Marketing & Research essays

  1. P4 - Describe the legal and financial aspects that will affect the start up ...

    such as sales tax and income tax as people who own their business have to pay taxes on any profit that they make. Both of us will be responsible for all the debt as well and in some cases we might have to end up paying it from our own personal accounts in case our business is a lose.

  2. BTEC BUSINESS UNIT 2

    The customers can also track the orders made online by using a code to see where about the ordered merchandise is. The IT had to make the site and maintain it so that the customers are kept happy by not having to leave the house to buy the merchandise they want.

  1. Business Studies Company Profile

    * The quality of the product, i.e. so it won't fall apart. * Staff quality, i.e. sales personnel and mechanic. * Style of the product, i.e. the product fits in with the current styling trends. * Brand name, so that when potential customers see the logo on the car, they think of the brand, i.e.

  2. Opening a sandwich shop in huddersfield

    Me: What's your favourite sandwich? Kuram: Meatball mariana. Me: What don't you like about subway? Kuram: Its quite expensive but its value for money. The portions are big so I suppose it is worth the money. Conclusions to section 4.1.2 I found out who my competitors were by searching on www.yell.com.

  1. Describe the Social Implications of Business Ethics Facing A Selected Business In

    Employees and directors may not trade in or even recommend company stock whilst in possession of any information. Timberlands insider trading policy applies to all employees and directors. * Bribery is a form of corruption in which an individual or business may offer a payment or gift to a person

  2. Business Coursework - Setting Up A Small Business

    461 Kingston Weybridge Staines Hourly (X.45) 471 Kingston Weybridge Woking Hourly (X.15) 551 Staines Addlestone Lyne Every 2 hours Peterbus 4 Chertsey Weybridge Chertsey Hourly (X.30) As you can see Bus's run through Weybridge, 4 times an hour, which equates to one every 15 minutes. The main linked towns are Kingston, Staines and Woking, which are all big shopping town's, with large shopping centre's or alike.

  1. Marketing Aims and Objectives - with examples from major companies.

    New Look sell their own brand of jeans, t-shirts etc. they will have to ensure that they know and understand what their market is looking for in t-shirts and jeans. The marketing department conduct research into other retail competitors e.g.

  2. Describe the limitations and constraints of marketing

    The purchasers were entitled to reject the goods under this act as they were not as described. 1. Goods must be of satisfactory quality. For example: 1. A fisherman sold his fishing boat to the claimant. The claimant brought an action against the defendant based on breach of Act

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