External Constraints
A constraint is something that stops you doing something. So, in business, an external constraint is something that exists outside of the business that stops the business doing whatever it wants.
Examples are:
I've outlined the key features of each below.
Examples are:
- Laws
- Consumer Protection Agencies
- Pressure Groups
- The Government
I've outlined the key features of each below.
Consumer Laws
Consumer laws exist to protect us as consumers (or customers). They are there to stop businesses from ripping us off. The main laws are:
- Sale of Goods Act - all goods must be fit for the purpose that it was made for. So if you buy a waterproof jacket and it gets you wet through in the rain, that is not fit for purpose. Take it back and get a refund!
- Trade Descriptions Act - this law says that all goods must be described correctly. So a local car dealer cannot say a car is in 'Perfect Condition' if the doors are hanging off!
- Weights and Measures Act - my favourite law. This says that the correct weight or measure must be stated on the product and you must receive exactly what you pay for. So for example, if I buy a pint of beer from the pub, I must receive a full pint of beer and not half a pint of froth like they do in some pubs down town, the con-merchants!
- Food Safety Act - this law says that all food premises must be clean and hygienic. Food Safety Officers can close down take-aways and restaurants if they find mice droppings of cockroaches - trust me, it happens!
- Consumer Protection Law - this law covers many things, but the main issues are that dangerous goods must contain health warning, such as the poison sign on a bottle of bleach. Shops must also not try to con us when they put items in a sale. If a product is in a sale, it must have been sold at a higher price for at least 28 days within the last 6 months.