Business Finance Homework Help

Case Application 12: TEAM FUN!
 

Kenny and Norton, owners of TEAM FUN!, a sporting goods manufacturer and retailer, are
sitting with Tony, director of human resources and Edna, compensation and benefits manager. Tony
comments, “You mean to tell me that no one has actually retired from TEAM FUN!, and no one asked
about the retirement plan before I got here?”
Norton scowls and observes, “You have been the first to bring up a whole lot of issues. And, no.
No retirees. No retirement questions. We always had the profit-sharing and that tax shelter that Leo set
up for us. Everyone does what they want.”
Kenny says, “Your mom did, Norton, after she helped us set up that bookkeeping system when
we started.”
Norton says, “No, she didn’t. We never paid her anything but free tickets to all the local pro
games, so she didn’t really retire.”
Tony says, “I’d like to show you how to save some money for health insurance premiums.
Offering everyone free full Blue coverage is really expensive. There are some other options. And I think
you should consider some money-saving vacation options. I never heard of anyone doing what TEAM
FUN! does.”
Kenny frowns. “As I recall, the vacation plan was what got you to take your job.”
Tony sheepishly grins. “Four weeks to start is incredible. And earmarking one week to try out
company products or services with you footing the bill sounded like a dream come true.”
Norton nods. “That’s what we thought. Anyone who wouldn’t see it that way shouldn’t work
here!”
Edna offers, “I agree that the vacation policy is great. However, we have trouble getting working
moms in here. And I think that soccer moms could add a lot to us. We need more family friendly
benefits to really attract them.”
Tony jumps in. “Exactly! If we come up with some guidelines to let employees tailor the benefits
package to their own circumstances, we will spend benefits dollars more effectively and have a happier
workforce.”
Kenny frowns. “How could they be any happier?”
“We’d have a more diverse workforce,” Tony replies.
“What do you mean, diverse?” asks Norton.
Kenny stands up and stretches and waves Norton over to the door. “Great ideas, Tony. We’ll talk
more tomorrow. Come on, here. Why would you want to change that? Norton, let’s roll. We’ve got to
see the finals of that tournament we watched yesterday.”
 

Questions:
1. As Tony’s intern, work up a presentation chart for three major health insurance options. Make a
recommendation.
2. How does TEAM FUN!’s vacation package differ from most U.S. companies? Should it be the same?
Why or why not?
3. Design a flexible benefits plan for TEAM FUN!
4. Evaluate the retirement policy in light of current human resource practices. Is it effective for this
organization?
5. Is TEAM FUN! family-friendly? Explain.