Identify internal and external constraints on a budget with reference to planned activities,available resources ,market size and unpredictable changes
Internal constraints on a budget include limitations on available resources such as funds, personnel, and technology. If a company has a limited budget, they may not be able to afford to carry out all planned activities. Additionally, internal constraints may include budgeting decisions made by higher management that restrict the allocation of funds to certain activities.
External constraints on a budget can include factors such as market size and competition. A company may have a limited budget for marketing activities due to a small market size or intense competition in their industry. Unpredictable changes in the market, such as shifts in consumer preferences or changes in regulations, can also impact a budget and require adjustments to planned activities.
Overall, both internal and external constraints can limit a company's ability to carry out planned activities within a set budget. It is important for organizations to carefully consider these constraints and make strategic decisions to ensure that budget resources are allocated effectively and efficiently.