Question

The Fit Stop Ltd. is a brand-new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and to provide customers with personalized advice geared to a customer's specific training or conditioning needs (e.g., training for a particular sport, rehabilitation from injuries, strengthening of back muscles to deal with back pain, general conditioning and fitness), whether the customer is eight or 80 years of age. In order to provide high-quality advice, each store will employ a physiotherapist (to provide advice on problems such as injuries or chronic back pain) and a person with a bachelor's degree in kinesiology (to provide advice on training for various sports of other physical activities). A staff member will even sit down with customers and develop a personalized training or conditioning program that meets their own specific objectives and needs, al no cost to the customer. The remainder of the staff in the store will consist of a manager, with a Bachelor of Commerce degree, and sales staff, who will have at least high school diplomas. Due to the long opening hours, it is expected that between 8 and 12 salespeople will be needed for each store. Because the stores are in shopping malls, they will operate on a Neven-day-4-week basis, open 9:00-9:00 weekdays, 9:00-6:00 Saturdays, and noon to 6:00 on Sundays. Aside from personally helping customers, the roles of the physiotherapist and kinesiologist will be to train other employees in how each type of equipment can be used for various conditioning and rehabilitation purposes. Initially, sales staff will be given general training, but as time goes by, each salesperson will be expected to learn in depth about all the different pieces of equipment, to help customers diagnose their needs accurately, and to be able to explain proper use of the equipment. Because of the high level of training required, all employees will be full-time. The founder of the business is Susan Super fit, who has undergraduate degrees in kinesiology and commerce from the University of Saskatchewan. While at university, she participated in many sports and suffered many injuries due to her all-out style of play). She carne up with the idea for this business while laid up with one of her injuries. While there were businesses that sold fitness and conditioning equipment’s found that the people selling it had very limited knowledge and often gave poor advice on what to buy and how to use it. She has secured funding from private investors and from Growthworks, a large Canadian labour-sponsored investment fund. In order to get volume discounts on the equipment she will be purchasing and to beat competitors into the market, she wants to start off quite large, with stores in major cities in Ontario and the four western provinces, before expanding to Quebec and the Atlantic provinces. She knows that this is a risky strategy and that cost control will be essential to keep the business going long enough to become well known and develop a stable clientele. She does not expect the business to make a profit for at least one year, or maybe even two. Her main competitors will be sporting goods megastores and department and dis- count stores, each of which sells some of the same equipment. Some of these outlets will be able to price their equipment lower than The Fit Stop will be able to, but none have the range of equipment that The Fit Stop will have, and none provide the personalized services that The Fit Stop will. Susan believes that the key to her business success will be highly motivated and knowledgeable employees who have a strong concern for their customers and who are able to work as a team with the other employees to provide the best possible customer service. Since no two customers are exactly alike, employees will have to he innovative in developing solutions that fit their needs. It will also be crucial to keep up with the latest fitness and training trends, as knowledge about fitness is continually increasing, along with new and different types of specialized equipment. A key aspect of company strategy is to be the most up-to-date and advanced supplier of new products and techniques. Although Susan has given a lot of thought to her business, one thing she hasn't really given much thought co is how to compensate her employees. Since she doesn't really know much about compensation, she tends to feel that the safest thing would be to just do what her competitors are doing

que 1-Analyze “The Fit Shop Ltd.” Case and identify the benefit systems (including specific benefits) that would make the most sense for this firm. minimum 500 words

que 2-You have decided that the Fit Stopwould be well suited to Organizational Performance Pay. Select the specific organizational performance pay plan that would seem to work best; then design it, describing specifically how you would deal with various design issues. When you are done, the plan should be ready for implementation. minimum 500 words.

Answer 1

1Q Answer:The FIT SHOP LTD. Case:

Benefit systems·Identifying the right business is the first success stone for the business. It is not that much easy to invest in a business that get success. Most of the investors do so much analysis and groundwork to start a company. Fitness is one of the most trending and everlasting business. Most of the fitness companies failed to grow in the sector because of lack of knowledge, experience, and skilled staff. But in this case “The fit shop ltd.” owner has good experience as she faced personally that brings her what to be there in the fitness center, and what all required to establish.

• The Fit Shop Ltd. consists all types of training products to improve the fitness to public, and also available sports equipments where most of the fitness centers does not consist all varieties of equipment’s at a single store is the major advantage for the industry to restrict the customer·
• Out of her experience, she started the fit shop business is the first benefit of having complete knowledge on the business.Recruiting skilled and professional staff for the business with complete knowledge and degree·Availability of the latest equipment in the fit shop ltd. Is also an advantage for the business·
• Recruiting the experts in the field is also an added advantage where most of the customers will be looking for experts in the fitness centers because that is related to health
• Even the founder has a degree and knowledge on fitness which helps to invest in the right area to grow·Innovative advertising methods, like advertising in malls where most of the business individuals, and high profile customers will be visiting to malls would be great to attract those customers·The available services like personalized, sports, fitness, injuries, rehabilitation and other physical fitness based issues are considered in the center. Extending her stores to famous province in the state
• Understanding the competitors in the field and extending services what the competitors failed to provide. Services like personalized training and concern towards customer’s fitness is best in the Fit Shop ltd.Staff segregation as per the business need and assigning roles and responsibilities for every individual·Strong sales team and their dedicated working hours to businesses establishments. Each store is group of persons who can deliver demo sessions to the customers and a sales team to provide the cost details and specialized training persons on how to use the equipment
• The complete training and guidance with free of cost to the customers is also an added advantage that fit shop ltd provides·Fit shop ltd also consists the latest technology based equipment’s that meets the user needs and requirements·All aged groups can use the equipment because of the flexibility and plug n play system·The great coordination towards customer service and patience in providing complete advice and suggestions to customers·All required products and services at one place with latest and more innovative way of doing business is the best benefit that the fit shop ltd. Has to grow in the business

2Q Answer:

In this case the fit shop ltd. Has approached by analyzing the current fitness centres pay structure and applied same to the staff to encourage and satisfying its employees. She is not aware of the compensation structure at least she has to follow her competitor’s compensation. Else she might lose the staff and cannot continue her business if she compensates lower than the competitors there will be shortage of the employees. To avoid such confusion and to get knowledge on the same, and to be on the safe side allocated same salaries what her competitors are following.

• Organization performance pay can be judged and concluded by analyzing the similar business areas for more information·
• Employee pay structure and compensation plan be the most important step that an organization has to plan accordingly. Because they should be able to inform to the employees. The clumsy and confusion compensation structure, and lower pay structure will not make their employees stand long with the organization·
• Most of the skilled staff cannot stick to the company based on its compensation or pay structure. To convince such employees the organization should be well-prepared to educate and inform the industry level and areas of improvement through which organization and employees are benefited in future collaboration with the company·
• Later the pay structure can be changed and adjusted as per the performance of the organization. But the industry should be able to pay the basic pay that the local government has decided to pay for the employees. Lower than the government rates no one will be ready or interested to work with any industry·
• The organization by considering all the similar businesses and basic pay structure they can create plan as per their business need and requirement to provide and justify the kind of service deliver by the employee·
• Compare all the compensation plans and skills that are considered and structure. Based on the plans identify the right compensation plan that justify the service and skill of the employee a design a new plan and discuss with the finance team for a better output or plan·
• Make sure all the skills, and qualifications are considered in the plan and assigned accordingly·
• Select a plan that justify all levels of staff, and their compensation ranges and it should tally with the competitors. Even though so many designs are identifying a right design is not a big issue. As the company understands what it can afford and invest in the business at the same time organization should be well aware of involving all performance pay considerations and work accordingly·
• Than design a new plan by categorizing as per qualification and skill of the employee. Divide them to rate their skill set and experience. Organization culture, proper evaluation of the performance, and fair funding all should be considered for performance pay.
• By considering qualification, skill and experience design a pay structure that suitable for employee and employer. Transparency is more important in designing a performance pay. The organization has to evaluate in always to design a right pay·
• Mostly design pay structure in such a way that it should satisfy the employee and employer needs and requirements. The proper system evaluation, training, and Funding is also considered for best compensation implementations