What are the Disadvantages multiple organisations?


1. Limited choice:

Multiple shops deal in one line of goods. Therefore, consumers do not get the opportunity of choosing from a wide variety of products. It is not possible to cater to individual tastes and fashions as goods are standardized.

2. Absence of services:


Customers do not get credit, home delivery and other facilities in multiple shops.

3. Low motivation:

The managers and employees working in multiple shops have no free­dom of making decisions. They have to follow the instructions of the head office. They do not take interest and initiative in improving the efficiency of operations.

4. Lack of personal touch:


The paid staff does not pay personal attention to the needs and preference of customers. The owner loses direct personal contact with the customers.

5. Heavy overheads:

Multiple shops have to spend huge amount on rent and decoration of shops, etc. The costs of maintenance are high. There may be wastage and pilferage of goods.

6. Difficulty in coordination:


Coordination between head office and branches becomes difficult due to long distance and wide spread location. Multiple shops also face competition and resistance from local traders.

7. Huge Capital:

A larger amount of capital is required to establish multiple shops.

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