Which of the following statements explains why small businesses are generally more effective than large companies in specialty retailing?
A) Large companies generally lack the specialists that are needed to make a retail store profitable.
B) Specialty retail stores are generally located in small towns where large organizations tend not to compete.
C) Specialty retailing requires a different organizational structure than is usually found in large companies.
D) Innovative people leave the bureaucracy of big business to start their own firms.
E) Specialty retailing relies on customization,which is not cost effective for large companies.

Question

Quizplus · Accepted Answer

Specialty retailing often requires customization to meet the unique needs and preferences of customers. Small businesses are generally more effective in this area because they have more flexibility and are able to offer personalized products and services. Large companies may struggle to achieve the same level of customization due to the higher costs associated with mass production and distribution. Therefore, option E explains why small businesses are generally more effective than large companies in specialty retailing.

Which of the Following Statements Explains Why Small Businesses Are