Enterprise Marketing — Entrepreneurship STD 12 Commerce — Question

Raghav after doing his B. Pharma. Degree from a reputed government college started two chemist shops in two different localities of his home town. Encouraged with the success of these shops, he started six more shops in different cities of the State. His strategy was to cut price, focus on lower and middle-class patients and open shops near hospitals. He operated on very thin margins. But he was not able to maintain sufficient funds to meet the day to day expenses of the business. The staff of the shops did not give much attention to the customers, and there was very poor system of control. Because of this mismanagement, he started incurring huge losses, and his business failed.
Based on the above para identify and explain any four causes of business failure of Raghav.