Ratan 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 earned good profit margins. But the staff of the shops did not give much attention to the customers. Because of this mis-management he started incurring huge losses and his business failed.
On the basis of the given information about Ratan, answer the following questions:
(a) Identify and explain the main cause behind the business failure of Ratan.
(b) Explain any two other causes of risk associated with Ratan's business.