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Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles - HSC - SSCE Business Studies - Question 26 - 2015 - Paper 1
Question 26
Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles. Its advertising states that a customer who uses the bike for 10 minutes per day is g... show full transcript
Worked Solution & Example Answer:Sally has just bought Fit Fast Bikes, a business which sells exercise bicycles - HSC - SSCE Business Studies - Question 26 - 2015 - Paper 1
Step 1
describe the consumer laws that Fit Fast Bikes may be breaking
Answer
Fit Fast Bikes may be breaching several consumer laws primarily related to deceptive and misleading advertising. By claiming that customers are guaranteed to lose 20 kg in one month with minimal exercise, it creates unrealistic expectations and could mislead consumers into purchasing their products under false pretenses.
Additionally, the lack of refunds or repairs violates consumer rights, especially in terms of warranty and the expectation of satisfactory quality. Consumers should feel confident in the products they purchase, including assurance that any defects will be addressed.
Step 2
propose human resource strategies to manage the current sales staff more effectively
Answer
To improve the performance of the sales staff at Fit Fast Bikes, several human resource strategies can be implemented:
- Training and Development: Implement regular training sessions focused on product knowledge and customer service skills. This will empower employees to make informed recommendations and create a better customer experience.
- Performance Management: Establish clear performance metrics and regular reviews to ensure staff are meeting sales goals while adhering to ethical practices.
- Incentive Programs: Introduce non-monetary incentives such as recognition for good service or bonuses for consistently satisfied customers, rather than solely relying on commission, which can encourage unethical sales behavior.
Step 3
explain how marketing and human resource management are interdependent at Fit Fast Bikes
Answer
Marketing and human resource management at Fit Fast Bikes are closely interlinked in several ways. Marketing strategies must align with human resources to ensure that the sales staff can deliver the promised value to customers. For instance, if the marketing campaign advertises exceptional customer service and product quality, the HR department needs to recruit and train employees who embody those values.
Moreover, feedback from customers can inform HR strategy by identifying skills gaps in the sales team, which can then be addressed through targeted training. A cohesive approach between marketing and HR ensures that the messaging is consistent with the customer experience, thereby enhancing overall business performance.