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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 appears to be violating several consumer laws primarily focused on deceptive and misleading advertising. The claim that a customer can lose 20 kg by using the bike for just 10 minutes a day is likely exaggerated and not substantiated by evidence, thus misleading potential customers.
Additionally, the promise of a full refund coupled with the refusal to actually issue refunds or repairs contradicts warranties that are generally expected in sales transactions. This creates an environment where consumers may feel they have been misled or unfairly treated, which is against consumer protection regulations.
Step 2
propose human resource strategies to manage the current sales staff more effectively
Answer
To manage the sales staff at Fit Fast Bikes more effectively, the following human resources strategies could be implemented:
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Training and Development: Offering comprehensive sales training programs that emphasize ethical selling practices and customer satisfaction could be beneficial. This will help sales staff understand the importance of building long-term customer relationships rather than focusing solely on commission-based sales.
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Performance Management: Establishing clear performance metrics that do not solely rely on sales commissions. Incorporating customer feedback and satisfaction scores into performance evaluations can encourage staff to prioritize customer service.
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Rewards and Recognition: Implementing a rewards system that acknowledges not only sales but also customer service excellence could motivate staff to perform better and align their goals with the business's long-term success.
Step 3
explain how marketing and human resource management are interdependent at Fit Fast Bikes
Answer
Marketing and human resource management are interdependent functions that work together to achieve the overall goals of Fit Fast Bikes. Effective marketing requires a knowledgeable and motivated sales team that can convey the benefits of the products accurately to potential customers.
On the flip side, human resource management ensures that the organization recruits, trains, and retains staff who embody the brand values and can deliver the marketing message effectively.
Moreover, feedback from the sales team regarding customer interactions can provide valuable insights for the marketing department, enabling them to craft more effective advertising strategies and improve overall business performance.