Essay on Strategic Compensation

975 Words Oct 15th, 2013 4 Pages
The Fit Shop
The Fit Shop 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 specific muscle groups to deal with back pain, general conditioning and fitness), regardless of the age of the customer.
In order to provide high quality advice, each store will employ a physiotherapist (to provide advice on problems such as injuries or
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Because of the high level of training required virtually all employees will be full time. The exception will be students who are enrolled in physiotherapy or kinesiology, will be employed on a part time basis.
The founder of the business is Susan Superfit, who has an undergraduate degree in both kinesiology and commerce from the University of Saskatchewan. While at university, she participated in numerous sports (and suffered frequent injuries due to her all-out style of play). She came 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, she often found that the people selling them had very limited knowledge about the products and often gave poor advice on what to buy and how to use it.
She has secured funding from private investors and venture capitalist. In order to get volume discounts on the equipment that she will be purchasing and to beat competitors in the marketplace, she wants to start with stores in major cities in Ontario and the four western provinces before expanding into 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. Susan does not expect the business to make a profit for a least a few years.
Her main