Internal constraints
Financial: The pursuit of higher profit might be constrained by lack of cash flow, esp. at a time of rising or even booming demand.
Labour force: Any business activity requires the co-operation of the workforce. It is also important that the business has the manpower with the necessary skills.
Type of business: New or young buisness may set themselves financial objectives but because of inexperience or the difficulty in assessing a new market they may set unrealistic targets. Larger, more established businesses will find it easier to set and achieve their objectives because of the experience that they have. PLCs may be more constrained in their objectives, as they will have to satisfy the shareholders as well as the management.
Operational: A firm that is close to full capacity may find that it has fewer opportunities for improvig the profitability of the business, unless it has the confidence and the resources to increase capacity, perhaps by moving to bigger premises.
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