Resource Constraints

Resource Constraints: Firms frequently face limited availability of essential inputs, such as skilled labor, key raw materials, energy, specialized machinery and warehouse space. Manager’s also often face capital constraints that place limitation on the amount of investment funds available for a particular project or activity.
Contractual Requirements: Many managerial decisions can also be affected by contractual requirements. For instance, labor constraints limit flexibility in working scheduling and job assignment, sometimes even affecting whether labor costs are fixed or variable. Contracts often require that a minimum level of output be produced to meet delivery requirements. Similarly, output must meet certain minimum quality requirements such as nutritional requirements for feed mixtures, audience exposure requirements for marketing promotions, reliability requirements for electronic products, and requirements for minimum customer service satisfaction levels.
Legal Constraints: Legal constraints are of the nature of legal restrictions which affect both production and marketing activities. Laws- that define minimum wages, anti-pollution measure, fuel efficiency, health and safety standards and fair pricing and marketing practices etc. all limits managerial flexibility.
Implicit Constraints: Implicit constraints such as environmental, structure behavioral and value-based are implicit in nature and cannot be explicitly defined. But, these constraints also affect in managerial decision making.