If I open a business there will be constraints. Constraints are restrictions placed on organisations that can prevent them from achieving their objectives. They can be internal- from within the company, or external Internal Constraints Finance- This could be a problem to my business because it is difficult to raise money to set a business up. I would have to take out a loan or find a way of getting some money together. Then I would have to pay off the loan. If I borrow the money I will have to save up and pay back the interest rates.
Workforce/staff- This will be a problem to my business because I will have to advertise for a new member of staff then interview the people who are wanting the job. Then they may need training to make them better at the job. If they were then not good enough for the job I might have to let them go. This would take up a lot of time and money. Also if no one applies there will be nothing to put on the application forms. Physical Resources- This will be a problem because there may not be any shops to let or for sale in the area I would like my shop to be.
I would like my shop to be in a busy place but that may cause problems because all the shops in busy places will be owned already. If I did find a shop, I may not be able to afford it, especially if it was in a busy place, e. g. Leeds Town Centre. There may also be problems when it comes to presentation in the shop- would I be able to afford the stands to put the products on? How would I lay out all the stands to make the shop floor look spacious? External Constraints Interest Rates- This may prevent me from achieving my objectives because the interest rates effects the loan amount if I borrow money.
Say the interest rates are high – the loan payments would also be high. Which means I may not be able to pay off the bank loan I have taken out. Competition- This may cause problems to my business because I will have to compete with the other stores in the area that sell the same kind of products, e. g. Superdrug, Boots. I will also have to keep up with the new trends and fashions of the competitors. Pressure Groups- A pressure group is a group which specifically aims to influence public policy.
This may be a problem because people may protest in front of my shop about testing cosmetics on animals. This may put people off of coming to my shop, which means I won't be making any money/profit. An example of a pressure group that may target my shop is the RSPCA. 'The RSPCA and other animal welfare organisations are called upon to deal with thousands upon thousands of direct cases of animal testing each year. ' Laws If I open my business there are certain laws, which will affect me. Some of these are shown below. Employment Laws Sex Discrimination Act
The Sex Discrimination Act doesn't allow sex discrimination against people in the areas of employment, education, and the provision of goods, facilities and services. It also prohibits discrimination in employment against married or unmarried people. Also victimisation because someone has tried to exercise his or her rights under the SDA or Equal Pay Act isn't allowed. This may be a problem because I would not be able to just interview women even though it is a beauty shop. Under the Sale of Goods Act businesses must sell goods that are described and are of good quality.
If the consumers discover that products do not meet the requirements they can give them back and ask for their money back providing they do so quickly. They could also request repair, replacement or claim compensation. The Sale and Supply of Goods to Consumers Regulations 2002, which transpose a European Directive, have changed the Sale of Goods Act. Even though the impact of the Regulations is relatively modest there are some useful benefits for consumers. If I set up my own business I would have to make sure they match the Sales of Goods Act so I do not have to waste time replacing if the consumers reject them.
Influences There are also many influences that can affect my business. Technology – My business will have to keep up with the latest technology, e. g. Security cameras, checkout tills etc. Without security cameras my business will not be very secure, which means people may not want to visit. Also I will have to keep up with the technology of products. E. g. Straighteners, hairdryers… Advertising Organisations – There are restrictions when it comes to advertising, I will have to make sure that the products I am selling are not falsely advertised.
E. g. 'This Miracle Cream will clear all your clear and smooth your skin in 2 days' – when really it takes about 2 weeks to clear. The Advertising Standards Authority (ASA) makes sure all advertisements meets the high standards laid down in the advertising codes. So I will have to check that my advertisements are saying exactly what the products do. Target Market – I will have to look at the different age groups that visit my shop and the kind of people in the area so I can get an idea of what products I should stock.
I will also have to price the products with the amount people are prepared to pay for them and put offers on whenever necessary. My shop will be opened at normal working times due to the fact that people will not want to visit the shop really early morning or late at night. I need times that people are happy with. My main target group are females aged up to 35. I found this out from the responses from my questionnaire. Changing Consumer Trends – Like with the technology, I will be keeping up with the latest fashions and trends.
I would like to make my customers happy with what I am selling so therefore I will give them what they are wanting. The market is always changing, mainly depending on the time of year or the holidays. Final Report Terms Of Reference This purpose of the report I have produced is to investigate into opening up my own hair and make up shop. Procedures The information I collected was taken from many different resources. The Internet was the main way of research I used and the module notes I was given at the start of the coursework. I also used some information from some textbooks. Findings Questionnaire:
I have found out from my questionnaire what products people would buy, how far people would travel to visit my shop and what age group and gender are likely to come into my shop. Shop/ competition survey: I have found out from my competition survey what shops and stores (competition) I am up against and where they are situated, what goods they sell, the offers they have on, the design of their businesses and the customer service. Trends: After looking at the change in trends I have found out that I will have to keep up with the latest fashions in hair and make up. I will have to get new stock every time the trend changes.