Fit Stop

Case Study 1

Fit Stop – Designing a Reward System

Introduction

Starting a business can be an exciting time for an entrepreneur but new market concepts and opportunities are useless without the strategies to operate the company to success. Day to day strategies are needed to achieve the organizations goals. The largest expense of any company is usually the compensation strategy. The face of the retail company is the service staff and their relation to the customer are paramount to success. Firms are in competition to find qualified, engaged employees. The pressure for an organization to get it right is the key to competitive success. Companies now look to creative compensation strategies to create a environment that employees want to work for.

Using point form, write a brief description of the organization, its employees, and its challenges. What is the organization's domain?

Fit stop is a new business concept developed by Susan Superfit, who after a serious sports related injury, became aware of a market opportunity in the personal retail sports supply industry.

Susan with her undergraduate degrees in kinesiology and commerce, recognized that existing sport retailers marketed a limited range of fitness equipment and employed salespersons with very limited knowledge of the equipment being sold and gave little or poor advice on what to buy and how to use it.

Susan’s, business plan is to operate and compete in the existing retail market domain of large retailers. The domain consists of sporting goods stores, mega store, discount and department stores all retailing some of the same equipment. Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public.

Susan wants to start off with large stores creating a visible presence in the existing marketplace, competing along side other large retailers with similar products. Her goal is to breakout large stores in Ontario and branch into four provinces,...