In developing their strategic compensation systems, where output is customer focused, employer$$s reward employees according to the extent of customer service they provide. This is widely used in sales positions and commonly referred to as $$commission$.$ Here employees are given a percentage of sales, usually measured in units or pula. This percentage may change at predetermined levels.

Employees who are paid on a commission generally receive either, straight commission, which

means their total pay is determined by the commission formulae or salary plus commission, which combines a monthly salary base with a commission incentive.

a$)$ Outline stages with which business strategy development is dependent upon. $(6$ marks$)$

b$)$ Discuss two business strategies that are considered in developing compensation systems

$(6$ marks$)$

c$)$ Why should companies be concerned with developing customer focused strategies?

$(3$ marks$)$