A manufacturing company manufactures cloth. It has open shops at different locations in India. He sells goods on cash only. The shops have identical decorations. The prices of goods are fixed. In this way they eliminate unnecessary middlemen thus benefiting the consumers.
(a) Identify the type of shop referred to.
(b) Elaborate characteristics of such shops
A manufacturing company manufactures cloth. It has open shops at different locations in India. He sells goods on cash only. The shops have identical decorations. The prices of goods are fixed. In this way they eliminate unnecessary middlemen thus benefiting the consumers.
(a) Identify the type of shop referred to.
(b) Elaborate characteristics of such shops
(a) The type of shop referred to is a chain store. Chain stores are a number of shops with a similar appearance established in localities spread over different parts of the country. These different shops normally deal in standardised and branded consumer products, which have rapid sales turnover. These shops are run by the same organisation and have identical merchandising strategies, with identical products and displays.
(b) Characteristics of chain stores are as follows:
- These shops are located in fairly populous localities, where there are sufficient number of customers.
- Centralised at the head office, from where the goods are despatched to each of these shops.
- Shop is under the direct supervision of a Branch Manager, who is held responsible for its day to day management.
- Controlled by the head office, which is concerned with formulating the policies and getting them implemented.
- The prices of goods in such shops are fixed and all sales are made on cash basis.
(a) The type of shop referred to is a chain store. Chain stores are a number of shops with a similar appearance established in localities spread over different parts of the country. These different shops normally deal in standardised and branded consumer products, which have rapid sales turnover. These shops are run by the same organisation and have identical merchandising strategies, with identical products and displays.
(b) Characteristics of chain stores are as follows:
- These shops are located in fairly populous localities, where there are sufficient number of customers.
- Centralised at the head office, from where the goods are despatched to each of these shops.
- Shop is under the direct supervision of a Branch Manager, who is held responsible for its day to day management.
- Controlled by the head office, which is concerned with formulating the policies and getting them implemented.
- The prices of goods in such shops are fixed and all sales are made on cash basis.
