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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 violating several consumer laws, particularly those regarding deceptive and misleading advertising. The claim that customers can lose 20 kg in one month by just using the bike for 10 minutes a day may be classified as misleading if it's not substantiated by facts. Additionally, not providing refunds or repairs contradicts consumer rights under implied conditions, which require businesses to honor their promises related to product satisfaction. Given the poor quality of the bikes and the numerous customer complaints, Fit Fast Bikes may also be violating warranty laws, which typically exist to protect consumers against defective products.
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 resource strategies can be proposed:
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Training and Development: Implement comprehensive training programs focused on ethical sales practices and effective communication. This will equip staff with the tools needed to convey accurate information to customers.
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Performance Management: Establish clear performance metrics that reward ethical selling and customer satisfaction rather than solely focusing on commissions. This will encourage sales staff to prioritize customer relationships over immediate sales.
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Feedback Mechanisms: Institute regular feedback sessions where customer complaints are reviewed. By making staff aware of customer sentiments, they can adjust their sales tactics accordingly.
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Incentive Structures: Create an incentive program that rewards staff for customer retention and satisfaction, rather than just for sales volume, to align their goals with the long-term health of the business.
Step 3
explain how marketing and human resource management are interdependent at Fit Fast Bikes
Answer
Marketing and human resource management are interdependent at Fit Fast Bikes in several ways:
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Alignment of Goals: Both departments must align their objectives to enhance customer satisfaction. Marketing strategies, such as accurate advertising, need to be supported by a reliable sales workforce who can deliver on promises made.
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Customer Insights: Human resource management can provide valuable feedback from the sales team regarding customer interactions. This insight can help marketing strategies to adjust their campaigns based on real consumer experiences.
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Brand Reputation: Marketing builds the brand image, which influences customer expectations. If the sales staff does not meet those expectations due to lack of training or unethical practices, it reflects poorly on the brand, demonstrating the need for collaboration.
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Staff Engagement: A motivated and well-trained workforce can significantly enhance the effectiveness of marketing efforts. Human resource practices that engage and develop staff lead to better customer interactions, which in turn strengthens marketing outcomes.