What are associated chains?

Associated chains apply to shops, hospitals, retailers and service industries that increase their ability to buy more cost -effectively through bulk purchase and advertising through associations. Most often you will see associated chains used to describe retail stores. For example, all Macy's® department stores in the country are associated chains. The key in this affiliation is that they do not compete together. A company that owns Mervyns® and Target® can say that two associated chains own, because the two companies can be considered competitors. In general, it is an associated chain, businesses do not give each other direct competition.

Sometimes you can see a free association between stores grouped to shops and centers. For example, Simon® Corporation shopping centers are an associated chain of shopping centers. The stores in the store are largely in competition, so their association is flies more free. YouHowever, the shops can still benefit from being at Simon® when Simon advertises their centers and increases pedestrian operation.

in retail stores is the best aspect of associated chains that they have much greater purchasing power. This is part of what is called savings of the extent. The more you buy, the less you spend on the item for most things. If you can buy 50,000 shirts of the same type for stock stores across the country, you will spend much less at a unit price than one shop that buys 15 shirts. This allows larger associated chains to provide consumers lower prices, although not all of them do so.

In recent years, you will see links to associated chains of hospitals, convalescent houses and pharmacies. This affiliation is carried out by lower costs of equipment and supplies, which can help reduce health care costs. Generally benefits of such IS chains reducedThe cost of stocks and sometimes energy. Prices of doctors and nurses in the associated chain hospital are not reduced.

There is some concern when it comes to associated chain hospitals when the lower limit becomes consciousness of costs and not patient care. Several large associated hospitals were under fire for providing insufficient patient care. It is good to keep up with where the hospital you are planning to use in the "chain" and how this particular chain is considered to be the quality of care. Associated chains may have wide standards of the company or "lower lines" in place to place the economy in certain circumstances. Unfortunately, the objectives of industries focused on business are not always altruistic.