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Organisation and Management



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Organisation and Management 

The Departmental store is organised as a Joint stock company and 
managed by a Board of Directors. The Board of Directors elect one among 
them as Managing Director. Who looks after the day to day administration.
Each department in the departmental stores is under the control of a 
departmental manager. All the departmental managers are under the control of 
Managing Director. The Managers of the departments are assisted by sales men 
who help them to attain the stores objectives. 
Features of Departmental Stores

The common features of the departmental stores are : 
(i)
Centrally located 
: Departmental stores are located in the centre of 
retail tading of large cities and within the reach of most of the 
consumers. 
(ii)
Wide Varieties 
: Departmental stores sell many kinds and wide 
varieties, so that, the customers can make all their purchases in the same 
shop and at the same time have the widest possible variety of goods to 
choose from. 


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(iii)
Service to Consumers 
: Departmental store offers services and 
amenities to their customers including provision of recreation facilities
cafeteria, reading rooms etc. It also extends free home delivery and 
guarantees satisfaction to the consumers. 
(iv)
Extensive use of Advertising 
: Departmental stores attract customers 
by their window display and variety of stocks. The stores also undertake 
national and local publicity. 
(v)
Cost of Operation 
: The cost of operation of a departmental store is 
high due to relatively high expenses for rent, advertising, recreation 
facilities, home delivery etc. 
(vi)
Centralized Management and Control 
: Departmental store is a 
cluster of several shops under one roof operating through common 
owners under one management and control. 
(vii)
Fixed Prices 
: Departmental stores offer the goods for sale at fixed 
prices only and there is no scope for bargaining since the price is printed 
on the package or on the product. 

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