1.

‘Inspite of many advantages multiple shops suffer from some limitations.’ In the light of this statement, briefly explain the limitations of multiple shops. 

Answer»

Limitations of Multiple shops

(i) Limited Choice: These shops deal in limited variety of products. 

(ii) No Credit Facility: Since the goods are sold on cash bases the customers can not avail credit facility from these shops. 

(iii) No Bargaining: The prices of the products are fixed by the head office and the individual shops have no control over it. Therefore the customers can not bargain the prices. 

(iv) Lack of Initiative: These shops are managed by the branch managers, who follow strictly the instructions of the head office. Therefore the branch managers do not take initiative and do not have any special interest in satisfying the customers.



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