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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. Extract A Ethics in the UK health and fitness club industry Th... show full transcript
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-offs occur when less of one option is exchanged for more of another. Profit is total revenue minus total costs.
Answer
One potential trade-off between profit and ethics for a health and fitness club arises when clubs insist on commitment to a year’s membership. While this might guarantee revenues over 12 months, it raises ethical concerns regarding customer choice and flexibility. Customers may be locked into a contract that does not serve their best interests, especially if their circumstances change.
Another trade-off occurs with the practices of personal trainers who may promote products like energy bars. While selling such products could increase profit margins, it might not align with the ethical responsibility of promoting healthy choices to clients. If trainers are incentivized to push these products, they may compromise their integrity and the well-being of their clients, focusing more on profit than ethical guidance.
Step 2
Potential counter-balance
Answer
Trade-offs may not result as much in the long term if customer satisfaction and loyalty are prioritized. Some members may welcome fixed contracts as they provide assurance and help in planning their fitness journey, which in turn may lead to higher retention rates.
Additionally, effective training and support from staff can lead to increased motivation among members. By creating an engaging and rewarding environment, fitness clubs can simultaneously meet ethical standards and enhance profitability. Members who feel valued and supported are more likely to continue their memberships and even refer others, thus benefiting the club's bottom line.