What are the advantages and disadvantages of ancillarisation?
AdvantagesMinimizes set up costLow level of InventoryEconomical SourcingBetter Quality StandardsComplementary RoleDevelopment of Entrepreneurial SkillsDisadvantagesÖ Dependence on parent company Ö ObsolescenceÖ Multiplicity of suppliers by parent companyÖ Securities like earnest money depositÖ Delay in receiving payments