Internal and External Constraints Facing Venetian Ices Ltd Essay

Constraints atomic number 18 laws, which the company must abide by. There are two different types of constraints these are internal and external constraints. midland constraints are those that the company controls their selves such as* Availability of finance* Existing company policy* Peoples behaviourExternal constraints are decisions that are made foreign the companys control such as* Government and EC legislation* Competitors behaviour* Lack of technology* The economic environmentThe internal constraints veneer Venetian ices include1.EquipmentVenetian Ices claim equipment in order to produce their goods and similarly keep the ice work frozen. So obviously they volition need equipment such as freezers (to store the ice cream), new ice cream making machines in order to produce the ice cream for the customers. They will to a fault need a mobile van, so that customers could get ice cream in different areas. Another equipment that Venetian Ices could convey is packaging, this will be for customers who would desire to buy a whole tub of ice cream from them. There are some problems, which may occur when replacement or extra equipment is needed. Venetian ices could in fact find themselves in a position where they are unable to afford the equipment that they would want available to them. In the case of additional equipment in that respect may not be enough room on the sight of enough employees to operate all the machinery.2. Financing the development of a Franchisee operationVenetian Ices must provide finance to their franchisees in order to get them started and set up in the business world. Venetian Ices can get their finance from a number of places and ways. The first is retained profit, but that can possible prove difficult for them, as small companies such as themselves only tend to hazard a small profit. They can also get their finance from selling as much ice cream as they mayhap can. Venetian ices would have to buy all the equipment and premised t hat they would require when they are setting up a business up and also paying all of the workers in their franchisee. This means that when a new franchisee joins at first Venetian Ices have to spend a lot of capital and get little back in return.3. Staffing for Increased drudgery OutputBy increasing the number of staff it would increase the output of the company, but this will mean having to pay out more money in order to pay their new employees. Also they may have a problem with the size of the premises. There could be a problem with the amount of raft allowed to work in the building, if there isnt enough room for everyone they would have to employ less people and then they would like.Some External constraints that may preserve Venetian Ices include1.Raising financeHow much finance Venetian Ices can raise depends a lot on the public who purchase ice cream from them and also investors who decide to invest money in the company. This could cause a problem though because in winter ice cream is less commonplace and a whole lot less people would come and purchase ice cream during the cold period. This could therefore mean investors will not want to invest in an ice cream company, which for part of the reason will not raise much finance.2. Planning PermissionIf Venetian Ices decided they valued to expand their premises or decide to build new premises for their company, they would require planning permission from the local council or the government. If Venetian Ices did decide to go ahead with an extension or the building of a new building without a contract from the authorities then they could be taken to court and compel to abandon work on their new premises completely.3. FranchisingVenetian Ices do not have complete control over its franchisees, as the franchiser does not continuously check them on. This can mean that franchisees may run the business against the company policy and use different and methods. For example if the franchisee trains the staff in how to recruit then the staff must do exactly as they are told to, if they recruit people in a different way or people who Venetian Ices dont want. This could lead to the company having a bad reputation.4. LawVenetian Ices must follow and work by all the laws. There has universe laws set about methods of employment, training, European regulations and also food which would defiantly apply to Venetian Ices. These laws can be checked often by government inspectors.5. tourismTourism is a big market for Venetian Ices as they make up a large percentage of customers in some areas where there are mobile and ice cream parlours. Tourist also often purchases goods on impulse. However, Venetian Ices cannot insure that the number of tourists in a certain area will remain the same all the time.6. ft and Mouth DiseaseAnother outbreak of foot and mouth can cause serious problems for Venetian Ices. Foot and Mouth affect cows, which Venetian ices, depends on for its main ingredient, which is milk. Another foot and mouth epidemic breaking out would make it hard obtaining the milk and also getting it transported as certain areas of the countryside would be shut off, therefore making transportation hard. Foot and mouth can also cause tourism to magnetic dip in certain areas and possibly even close. This would lead Venetian Ices in an awful position in them areas affected by foot and mouth. There could possibly be people who would want to stay away from the ice cream due to foot and mouth.