a. Operating Constraints: Business face a number of operating limitations such as:
1. The size of the market: there should clearly be a market for the product being offered. Absence of proper market conditions would lead to low sales.
2. Demand in the market: Thorough market research should be undertaken to anticipate the requirements of the customers.
3. The availability of resources: Supplier availability is very important for setting up operations.
4. Extent of competition: If the competition in the sector is highly stiff, then this could lead to major constraint on business success. Attempt should be made to limit the effect of competition in the market.
5. Investment requirements: Liquidity is very important for business success. Business need to have minimum funds to sustain themselves in dire situations.
6. Skilled labour: It has been acknowledged by businesses around the world that human resource is one of the most important resources of any organisation. Human resources help the organisations to gain competitive advantage as it is not easy to duplicate the capability of skilled labor.
b. Legal Constraints
Legal and regulatory constraints have significant impact on business success. Different governments have different regulations for setting up business operations in their respective countries. Business should not overlook the importance of such constraints. Various legal constraints that business faces are confidentiality and privacy of information, regulations and contracts that must apply when consumers and providers are located in different countries.
Source: Essay UK - http://www.essay.uk.com/free-essays/business/contraints.php
If this essay isn't quite what you're looking for, why not order your own custom Business essay, dissertation or piece of coursework that answers your exact question? There are UK writers just like me on hand, waiting to help you. Each of us is qualified to a high level in our area of expertise, and we can write you a fully researched, fully referenced complete original answer to your essay question. Just complete our simple order form and you could have your customised Business work in your email box, in as little as 3 hours.
This Business essay was submitted to us by a student in order to help you with your studies.
This page has approximately words.
If you use part of this page in your own work, you need to provide a citation, as follows:
Essay UK, Contraints in Business. Available from: <http://www.essay.uk.com/free-essays/business/contraints.php> [20-11-17].
If you are the original author of this content and no longer wish to have it published on our website then please click on the link below to request removal: