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Assess two possible examples of trade-offs between profit and ethics for a health and fitness club. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Question 1
Assess two possible examples of trade-offs between profit and ethics for a health and fitness club.
Worked Solution & Example Answer:Assess two possible examples of trade-offs between profit and ethics for a health and fitness club. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 3
Step 1
Trade-off Example 1: Membership Commitments
Answer
Health and fitness clubs often require members to commit to a year-long membership to secure consistent revenues. While this fixed commitment benefits the club financially, it may limit customer flexibility. A member who finds that the services are not meeting their expectations or who experiences personal circumstances might be ethically disadvantaged by the club's rigid membership policy. This highlights a trade-off between ethical customer relations and financial profit stability.
Step 2
Trade-off Example 2: Personal Trainer Incentives
Answer
Clubs may encourage personal trainers to upsell additional products, such as energy bars, to boost profits. However, this could lead to ethical dilemmas if trainers push products that are not actually beneficial for clients' health. The pressure to increase sales can conflict with providing genuine, customer-centric advice, showing a trade-off between maximizing short-term profits through sales and maintaining ethical standards in customer care.