Question

Justify the following statement:

Departmental store has centralized management system.

Answer 1

A department store is a large retail organisation divided into different departments such as garments, electronics, groceries, cosmetics, etc. Although each department functions like a separate shop, all of them are centrally owned, controlled and managed by one authority. Policies regarding purchase, sales, finance, staff and advertising are taken by the central management and applied uniformly to all departments. This avoids duplication, ensures uniform service to customers, and brings coordination in operations.

Thus, a department store has a centralised management system.