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The Fit Stop

You are a compensation consultant who has been hired by Susan Superfit, CEO of The Fit Stop, to formulate a compensation strategy for her new company.After reading the information provided in The Fit Stop case on pages 510 and 511 of the text, use the following steps and questions to develop the compensation strategy:1. First determine what managerial strategy and behaviours would be most effective for this firm. What managerial style would Susan Superfit prefer and is it the one that you have recommended?2. Use the five-step compensation strategy formulation process in Chapter 6 (Figure 6.1, p. 208), formulate such a strategy, and summarize it using a strategic template similar to that shown in Figure 5.2, p. 244. Give your rationale for each element of the strategy.3.Determine if a performance pay plan would seem to work best for The Fit Stop. If so which performance pay plan would work best for the firm and give you reasoning.4.Identify the benefits system (including specific benefits) that would make the most sense for this firm.Your case analysis should have a general structure that includes an executive summary, sections on managerial strategy, desired behaviours, base, performance and indirect compensation, some general weighing of alternatives, the conclusions you reached and the resulting recommended compensation strategy. Your report should be written in 12 point font, double-spaced and total 7 to 10 pages including covering and reference pages.

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