External Constraints on FLE

Authors Avatar
External Constraints on FLE

External constraints are things that may restrict or stop the company from achieving their aims.

Interest Rates- these can have a massive affect on any company no matter how big or small it is. An interest rate is the amount that you are charged when paying money back that you have borrowed. So this may affect the amount of money that the park can be borrowed if a loan is needed for the new park. If the company borrows money but cannot pay it all back with the interest on top then the company that they have borrowed from may begin to take the money back in the form of property or company possessions.

Shareholders- these are the people that own shares of the company. FLE is a plc so the shareholders are the general public and are free to buy and sell shares in the company as and when they please. As a shareholder people expect dividends from their shares dividends are -the profits of the company so if the company decides to re invest their profits into the company the shareholder's will not receive dividends this may cause them to sell on their shares if people rapidly sell the shares then the share price will fall and the company's profits will drop. Also of the economy is not doing very well people may be wary of investing money into businesses in fear of losing it all so the company may not sell shares so they will lose out yet again. Another problem with shares is that if the company isn't doing well then people may not buy shares or people may panic and sell their shares so this will result in the share price falling and the company's profit and value falling with it. If the company decides they want to make money through selling shares the price of the shares will affect them as they will not make as much money if the prices are low as they would if the company is powerful and making lots of money.
Join now!


Laws- health and safety laws mean that the business must ensure that rides are checked regularly and the standards are kept at a high level all the time to ensure the safety of the visitors and the workers ion the park. They will also have to ensure that all the staff are trained to a high standard so that they are capable of looking after the rides and that only a certain number of visitors are in the park at any one time so that the amount of staff is sufficient to effectively make the park safe for ...

This is a preview of the whole essay