Relevance of Chain Stores to the Community

3 pages (750 words)

Relevance of Chain Stores to the Community

Chain stores are businesses that have a central management and share various brands of products and services. They are characterized with business management methods and business practices that are standardized. Apparently, it is stated that before consideration as a chain store, an organization should have over 10 units which share the same brand. Similarly, there should be a central management with central headquarters (Finne and Hanna 3). Some of the renowned chain stores are Starbucks, MacDonald’s and Burger King. Most o the chain stores serve up to millions of customers on a daily basis. As such, they serve a large number of people in need of their services.

To begin with, chain stores are fundamental to the development of an economy. It is stated that the economy grows when most of the people in an area are employed and have a stable income. In the contemporary world, many people are unemployed due to scarcity of jobs, especially government jobs. Therefore, many people are embracing the need to develop the private sector. Most of the chain stores are established and require labor for optimum production. As a fact, many people are employed in the chain stores (Cox 61). When employed in the chain stores, the employees are entitled to salary at the end of each working period. As such, many people that are unemployed in the community will have a better chance of getting an employment. This has eased the pressure in the job market as the chain stores have to employ many people to cater for the demand of services and products. For instance, Burger king has a total of 13, 000 outlets in over 70 countries. With such a large number of outlets, it is evident that the chain store will offer employment opportunities to many people in various communities. However, there is an issue when it comes to employment, especially in the management levels. Most of the management level jobs are appointees. This is a disadvantage to some communities who are merited for such jobs.

The community appreciates a business that offers products of high quality at affordable prices (Cox 102). This will ensure most of the members of a community access products and services at ease. This is one of the strategies used by chain stores. According to economic paradigms, large scale production results into reduced costs of production. Apparently, most of the chain stores appreciate large scale production. As such, they have reduced their costs of production. Similarly, the chain stores have enhanced their mode of transportation. Transporting products and services in bulk reduces the costs of transportation from one place to another (Finne and Hanna 7). As such, the chain stores will have lower price tag on their products and services. This is an advantage to the surrounding communities as they will avert the issue of constrained budgets when in need of products and services from the chain stores. For instance, Starbucks is a chain store with over 20, 500 stores in over 60 countries. Such a chain store will realize the economies of large scale production. However, there is an issue surrounding the large scale production of products and services. It is deciphered that some of the community members would wish to run small scale businesses. Therefore, their production is on small scale. As such their costs are higher when compared to costs incurred in chain stores. Therefore, the small scale producers and manufacturers in the community will be disadvantaged since their products and services attract a higher price tag.

Chain stores are established in different parts to serve the demand in these areas (Cox 5). This is an advantage to the community as it is served with the services and products they need. As a fact, people do not need to travel long distances when in need of services and products. This has eased the challenges the market faces when in concern to accessibility of products and services. In such circumstances, the community is satisfied with the services and products as they are readily available. In some areas that do not have chain stores, the community spends a large amount of their resources on transport. Similarly, the community is not served with fresh products as they have to be stored for long periods. However, there is a disadvantage in that the chain stores only offer limited brands of products (Finne and Hanna 15). This limits the products and services that are available to the consumers. In many instances, the chain stores will be adamant to add any other products and services to their existing brands. For instance, McDonald’s is a chain store that specializes in offering hamburgers and fast foods. Therefore, it will be a hard task to add other ranges of products and services.

In conclusion, chain stores are important in a community. First of all, they offer employment opportunities to the community. Secondly they are important in that they offer high quality products and services at affordable prices due to large scale production. Thirdly, the ease access to products and services. However, there are several setbacks which are noted. For instance, development of chain stores is a disadvantage to the small scale producers. With all these in context, chain stores should be appreciated as they are advantageous to the community.

Works Cited

Cox, Emmett. Retail Analytics: The Secret Weapon. Hoboken, N.J: Wiley, 2012. Print.

Finne, Sami, and Hanna Sivonen. The Retail Value Chain: How to Gain Competitive Advantage Through Efficient Consumer Response (ecr) Strategies. London: Kogan Page, 2009. Print.