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internal and external constraints

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Introduction

Introduction on external and internal constraints An internal constraint is usually within the control of the business. An external constraint is outside the business and is difficult to control, if at all. Often internal and external constraints go hand in hand and there is a fine dividing line between them. For example interest rates are an external constraint and this causes an internal constraint in that it makes the borrowing money more expensive for the business. Internal constraints - these are factors within the control of the business that are restricting it achieving its objectives. The main internal constraints are: Finance - has the business enough money to be able to finance growth? ...read more.

Middle

The affects of external constraints are; changing consumers tastes People want new products and services as soon as they come on to the market. They like to change to match whatever is trendy at the time. If this happens then a business may find its sales fall and it may no longer be profitable or not even survive. competitors' actions Businesses bring out new products all the time to try to compete. They launch new advertising campaigns and promotions to win over competitors customers. If consumers start to buy the new products because of competitors' actions then unless there is a counter campaign some businesses may loose customers and no longer be profitable or not even survive. ...read more.

Conclusion

legal constraints All organisations have to make sure they operate within the laws of the land. If they don't then the government has measures which it may use that could stop the business trading. social attitudes As people become more aware of how pollution affects the environment they start to buy products that are environmentally friendly. This in turn may lead to organisations which pollute not SURVIVING due to pressure groups making consumers aware of these issues. pressure groups As people become more aware of how pollution affects the environment they start to buy products that are environmentally friendly. This in turn may lead to organisations which pollute not SURVIVING due to pressure groups making consumers aware of these issues. ...read more.

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