What are the limitations of chain stores?
What are the limitations of chain stores?
The limitations of chain stores are as follows :
1. Limited selection of goods: These stores sell a range of goods produced in their organisations internally. Thus, they offer a limited choice of goods.
2. Lack of personal touch: Sometimes, indifference and lack of personal touch arise in the employees due to lack of incentives.
3. Problems of change in demand: The management has to bear heavy losses when the demand for their goods changes rapidly. This is because a large amount of stock remains unsold.
4. Lack of initiative: The branch managers are required to follow the instructions received from the head office. Thus, they become habituated to seeking the guidance of head office in all matters. This kills their initiative to make use of their creative skills.
The limitations of chain stores are as follows :
1. Limited selection of goods: These stores sell a range of goods produced in their organisations internally. Thus, they offer a limited choice of goods.
2. Lack of personal touch: Sometimes, indifference and lack of personal touch arise in the employees due to lack of incentives.
3. Problems of change in demand: The management has to bear heavy losses when the demand for their goods changes rapidly. This is because a large amount of stock remains unsold.
4. Lack of initiative: The branch managers are required to follow the instructions received from the head office. Thus, they become habituated to seeking the guidance of head office in all matters. This kills their initiative to make use of their creative skills.
