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External Constraints on FLE

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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 ...read more.


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 all of them. There are a lot of laws that restrict companies to who they employ how they advertise and how they pay and look after staff and how they extend their park. Whilst they are advertising for new staff they must make the adverts to both sexes i.e. they must ask for a secretary not just a female secretary or just a male secretary because this would break the sexual discriminations act. Also they can not just advertise for a Black person for a job or a White person for a job or an Asian for a job as this would go against the Race Relations Act. Also if a man and a woman are doing the same job they must receive the same pay if they do not then FLE will go against the Equal Pay Act and the company could come up against some legal action. ...read more.


Or they may pressure the park into building rides in certain places so that the heights or noise of the rides don't affect the neighbours of the park or the views around the area. Exchange Rates An exchange rate is the value of one currency against another. In other words it is how valuable the two currency's are against each other when you go on holiday to Spain the exchange rates are shown outside exchange bureau's to show how many pesetas you will get for each pound you exchange. This can affect the running of FLE because if the interest rates are high then people who are visiting the country will not get a decent amount of pounds for the money they change so they will not have a lot to spend in the country this may mean that they are not able to visit the park because it s too expensive. This will also affect the running of the park i.e. purchasing of materials, rides from abroad if the exchange rate is low then FLE will have to pay the countries more money for importing goods. ...read more.

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