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In what way is Capacity (supply) Constrained?
Pages 3 (753 words)
HANATOUR Name Course 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…
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. ...
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