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In what way is Capacity (supply) Constrained - Assignment Example

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In what way is Capacity (supply) Constrained

This may be due to the capacity (supply) constraint. Capacity constraint can be described as the limiting factor towards achieving the overall organizational objectives. Capacity constraints in cases of travel and tour agencies can be understood from various perspectives, which include but not limited to geographic, legal, political, financial, technology, and communication barriers (Kenny & Fyfe 2005, P. 136). HANATOUR is facing more than the above-mentioned capacity constraints considering that it is yet to take advantage of global presence. In other words, HANA TOUR is not in position to serve all its customers especially potential clients owing to financial, geographical, technological, political, legal, and human resources limitation. Geographical limitation is evident in the fact that HANATOUR does not enjoy full global presence. HANATOUR is currently operating in approximate 28 countries around the globe. This means that physical limitation, which includes water bodies and geographical disparities that calls for massive investment in transportation and establishing offices abroad is a major supply constraint to the company. HANATOUR is not in a position to provide its vital services to the potential customers located in distant areas where the company has not established its branches. Financial limitation is another major capacity constraint affecting HANATOUR. ...
Limited human resource personnel is another limiting factor to HANATOUR. The company is expanding gradually and as such, it has not reached a point of employing a large group of personnel to serve additional branches in different location. Now the available personnel is not in a position to serve the ever bulging demand for the tours and travel services. Legal issues form another significant constraint. A number of legislations and regulations govern a number of operations of HANATOUR. This means that non-compliance translates to supply constraint. For instance, the company cannot carryout inbound travel and tour services for a foreign client if the client in question does not have requisite travel documents to South Korea. Communication barrier is at times a limiting factor towards serving the needs of the client. The world is certainly a diversified place with respect to language differences as people for different places speak and understand different languages. HANATOUR may at times find it difficult to serve certain class of clients especially those that are speaking unique languages. Political issues such as riots, political instability, and strikes may at times limit the operations of HANATOUR. This is because tours and travel services highly depend on a calm political environment and as such, any interference on the political environment is no doubt a limiting factor towards achieving organization goal. HANATOUR is yet to adopt various IT systems related to travel and tours services (About company, 2012). Lack of appropriate It system has been a major limiting factor to the company preventing it from meeting the demands of their customers adequately. It is obvious that there exists a ...Show more
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HANATOUR Instructor Institution Date b) In what way is capacity (supply) constrained? There is no doubt that HANATOUR is an aggressive company that is always interested in leveraging on their diversity, good public image, and professionalism to meet the ever growing demand for travelling and tours services…
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