Question

Long answer type questions.

What are the chain stores? Explain their system of selling goods?

Answer 1

Chain stores refer to the stores that are owned and operated by single organizations that specialise in the selling of a single line of products. They are generally spread across different localities, so that it is convenient for customers to visit the stores. Some of the chain stores operating in India are Pizza Hut, Dominos, etc. The working of these chain stores follows a centralized pattern. That is, the head office generally practices centralised procurement of goods. The management and supervision of each of the chain stores is the responsibility of the branch manager of that store, who takes care of the daily operations. The stores are centrally controlled by the head office, which is responsible for policy-making and implementation. The prices of the goods offered by chain stores are fixed and low, and no bargaining is allowed. Although these stores provide a limited range of products but it works on a large scale and cover a wide geographical area for providing quality goods to its customers.