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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 breaking several consumer laws including:
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Deceptive and Misleading Advertising: The claim that customers can lose 20 kg by simply using the bike for 10 minutes a day could be considered misleading if such results are not achievable for the average consumer.
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Implied Conditions: There are certain implied conditions in consumer law that require products to be of satisfactory quality. Given that the bicycles are of poor quality, this implies a breach of customer protection laws.
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Refund Policy Compliance: By advertising a full refund policy but not honoring it, the business fails to meet consumer expectations and legal requirements regarding refunds, particularly under conditions where services and products do not meet standards.
Step 2
propose human resource strategies to manage the current sales staff more effectively
Answer
To manage the current sales staff more effectively, it is essential to implement the following human resource strategies:
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Training and Development: Regular training sessions should be conducted to educate the staff about ethical selling practices and legal obligations regarding consumer rights. This includes understanding their role in promoting the product truthfully.
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Performance Management: Establish a performance appraisal system that focuses not only on sales numbers but also on customer satisfaction and feedback. This encourages staff to prioritize quality service over aggressive sales tactics.
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Rewards System: Introduce a rewards system that recognizes employees based on customer feedback and satisfaction scores. This strategy will motivate staff to provide better customer service, aligning their interests with high-quality standards.
Step 3
explain how marketing and human resource management are interdependent at Fit Fast Bikes
Answer
The interdependence of marketing and human resource management at Fit Fast Bikes can be explained as follows:
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Alignment of Goals: Effective marketing strategies rely on having a knowledgeable and motivated sales team. Human resource management plays a crucial role in recruiting, training, and retaining skilled employees who can accurately represent the brand and its products.
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Customer Experience: The quality of customer interactions influences brand reputation. Human resources ensure that sales staff are adequately trained in customer relations, thus enhancing the marketing efforts to promote a reliable image of Fit Fast Bikes.
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Feedback Loop: Marketing efforts can provide valuable insights into customer preferences and complaints. HR can utilize this data for staff training programs, ensuring that sales strategies are responsive to customer needs and concerns.