DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : A. Srinivas Kumar
Designation : Senior lecturer
Branch : Commercial and computer
practice
Institution : Government polytechnic
for women, nandigama.
Year/ semester : 1st year
Subject code : CCP -104
Topic : Distribution network
Duration : 50 Mts.
Sub topic : Advantages and disadvantages of
multiple shops
CCP104.88
Objectives

After completion of period, you would be

able to :
 List and Explain Advantages of multiple shops
 List and Explain Disadvantages of multiple shops

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Recap

We have already discussed

 What is a Multiple shop

 Features of Multiple shop

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Advantages of multiple shops

 Economies of Large Scale buying

 Easy identification due to uniform

layout

 Lower price – Higher Sales volume

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Advantages of multiple shops

 Good Quality for the value paid

 No bad debts – cash and carry

 Lesser operational costs

 Flexible operations – Non profit units can be

closed

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Advantages of multiple shops

 Exchange of stocks amongst the

shops

 Elimination of middle men

 Personal contacts by Manager

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Disadvantages of multiple shops/chain stores

 Paid employees – Lack of Interest

 No credit sales - hence volumes limited

 Limited lines of products

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Disadvantages of multiple shops/chain
stores
 Local conditions not considered by head-office

 Maintenance costs more

 Inefficiency due to delayed decision etc

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Disadvantages of multiple shops/chain
stores
 Competition from local shops

 Best multiple shops pose a danger to local small

business

 They pose a danger to small and independent

retailers

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Summary
Advantages of multiple shops/chain
stores.
a. Economical buying
b. Mutual Advertising
c. Rapid turnover
d. quality products
e. Elimination of bad debts
f. Economical operations
g. Flexibility
h. Transfer of stocks
i. No middle men
j. No heavy rent.
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k. personal touch.
Disadvantages of multiple
shops/chain stores.
a. Lack of interest
b. Limited sales
c. Limited varieties
d. suitability
e. cost of maintenance
f. inefficiency
g. competition.

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Frequently Asked Questions

1. What are the advantages of multiple

shops?
2. What are the Disadvantages of multiple
shops?
3. List any six advantages and six
disadvantages of multiple shops

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