About Bounce Fitness
Bounce Fitness is made up of four fitness centres. Head office is currently established in Cairns, Queensland. The other centres are in Brisbane, (Queensland), Sydney, (New South Wales) and Melbourne, (Victoria). It is the intention of the Board of Directors that a new centre will be opened in Perth, (Western Australia).
It was established in 2001 by Margaret House as a single aerobic studio. After two years membership increases demanded the small leased centre be expanded and a new facility was built on land purchased by the organisation. In 2004 a second centre was established in leased premises in Brisbane and then Sydney and Melbourne in the subsequent two years.
The Head Office remains in Cairns and a Board of Directors has been established to oversee the function of the business in all of the centers. Each centre has a Manager, who reports to the CEO in Cairns, and a team of permanently employed fitness instructors and other casual instructors, all of whom report to the Centre Manager.
The business is operated on best business practice and complies with all legislative requirements, local by-laws and is registered with the national body.
Bounce Fitness intends to market its brand through excellence in service and expertise to establish itself as a premier provider of fitness and wellness in Australia. Much time is invested in training the Centre staff to upgrade their professional skills and in customer service to foster a loyal member base. Classes are innovative and varied with regular changes to routines and activities.
Bounce Fitness has developed choreographed fitness moves with accompanying music which is geared to the varying interests, needs and goals of the member group. It is intended that all around Australia, gym and fitness centre members will continue to be enhancing personal performance through classes designed and produced by this business.
Classes are coupled with state-of-the-art fitness equipment to cater to those who prefer resistance training to aerobic workouts. Additional free weights allow for use by even die-hard lifters.
All centers are carpeted in areas used for stationary activities, spacious, well-ventilated and air-conditioned to make the environment as safe and comfortable as possible. They are light and feature wrap-around mirrored walls. The decor was designed by a Brisbane firm and is updated every three years. There are showers, toilets, lockers.
Each centre features a retail section selling fitness shoes, clothes and other related fitness items. There is a small cafeteria which is leased to a provider who supplies healthy, low calorie drinks and light food.
Each Centre has regularly scheduled aerobic classes ranging from high intensity to low intensity. The scheduling is left to each Centre but must sustain a minimum average of twelve in each class for them to continue to be held. The style of classes changes as new methods are developed to sustain interest and provide variety.
Circuit classes are also scheduled for groups who move in a circuitous rotation around the different resistance equipment sequentially as instructed by the Instructor. They are required to complete interval aerobic exercises during the completion of a class to enhance the value of the workout.
Needs for Strategic Change
Very low intensity classes are also held in age care facilities to keep residents active and incorporate light weights to keep them healthy. This exercise contributes to the physical and mental health of participants as well as providing an interest in their day.
Special classes are held in high schools for senior students, sheltered workshops and other special situations as requested and are operated at minimal or no cost as a community service.
Funding is primarily from memberships. Memberships are sold on one, three, six and twelve monthly basis on a decreasing fee scale. Casual members are welcome, but the daily rate is a premium one.
Each Centre sells memberships to 120%. This means that at peak times it could be quite crowded, but experience demonstrates that there is a maximum of 80% usage.
The retail arm of the business accounts for about 30% of the takings from each centre. The strategic plan for retail is set to increase investment in sales this year to 35%. Each Centre will be given a budget to develop and implement a sales and marketing plan to trial. The most successful may be implemented nationally and will attract an incentive for the most successful Centre.
The catering facilities are currently leased to private operators, and this is reconsidered during each annual planning session by the Board, which produces 5% of the income, less than the rent off-set.
1. Identify the needs for strategic change through analysis of strategic plans contrasted with the practices as defined in the case study. You may prefer to use SWOT analysis but this is optional.
2. Discuss any patterns or trends in the external environment which impact on the achievement of the organizations change management objectives.
3. Identify major operational change requirements due to performance gaps, business opportunities or threats, or management decisions for this change management initiative.
4. Discuss how you review and prioritize change requirements/ opportunities with relevant managers. Conduct web research and indentify the name of an external specialist or expert who can help you identify major change requirements and opportunities in this case.
5. Complete a cost benefit analysis for high priority change requirement/ opportunities.
6. Complete a risk analysis, identify barriers to change agree and document mitigation strategies.
7. Develop your change management project plan.
8. From whom will you seek approval and confirm the change management process?
9. What resources will you need and how will you report to and gain information from relevant managers?
10. Develop communication/ education plans and discuss how you will consult with relevant groups and individuals. Do not forget that you must report to the executive as well as communicate widely with the centre staff.
11. Develop your communication/ education plan to promote the benefits of the change to the organization, and to minimize loss, and arrange activities to deliver the communication/ education plans to all relevant groups and individuals.
12. How will you consult with relevant groups and individuals for input to the change process after the implementation commences?
13. What barriers to change do you sees as possible? Develop a risk management and mitigation plan for each.
14. In your change management plan, include action plans and activities and the project timetable. You may use Critical Path Analysis or Grantt Chart for this, but may choose to use another method.
15. What are your strategies and how will you activate these for embedding the change?
External Environment Analysis
A company needs to analyze the inner strength and weakness for further development. Proper knowledge of the total market is very important to decide internal strategies as well as advice of the consumers are also very important. An advice page in the centre is helpful to judge the inner mind of the consumer that what actually they feel to change and also help to build further master plan.
After analyzing the Australian market of fitness centre’s it is observed that the total market is of $1.2 billion in the year 2012. It can conclude that people of Australia taking care of their health with the help of this fitness centres. Also the efficiency has increased by doing aerobics and all. It has been concluded that the market opportunity for this industry is very high.
Time management for the schedules of every group of clients is very important and the higher authority should give a clear instruction about this. Board of members should communicate with every team member at a time interval is needed to structure the mind of every staff in the institute (Öner, Benson and Göl BeÃ Å¸er, 2014).
- A caption should be there which indicates the priority of workout in your life
- Time management is essential for development
- Adding new instruments for workout is very essential
- Feedback from the employees is also essential at a time interval
- Specification of the areas for every type of workouts are important
- Increase the number of clients in each batch will generates some revenue as the usage is only 80% in pick time (Hahn, 2010)
- Taking control of catering into own hand of the company will generate a good revenue
- Add some more membership condition is also a good decision.
Operating issues are the main risks of opening a new branch in a new area. There is a big chance of communication gap when it is operated from main control centre. Communication time is also high (Torppa and Smith, 2011). A chance of miss communication is also there. Decisions taken by the directors and to communicate this with managers and colleagues from headquarter is time consuming as well as chances of create mess are huge. Also if the local office having their own decision taking capability may be differ from the directors. There is also a chance of communication gap. Proper communication with basic strategy discussion and understanding should be there for avoiding the false situation.
- Changes should be with least disturbance
- Communicate all developmental strategies (Lai, 2014)
- Observe the hazard of alteration
- Response in time
- Communications are strategy specific
- Cost calculation for every step
Alter plan is approved by Board of directors followed by finance head and operation head. This is the main regulation authority and approval committee. All the plans are thoroughly viewed and then approved by the organization head. Financial issues are solved and approved by head of finance and ultimately operation head will approved and apply to the concerned area.
Communication with the concern person is very necessary step. Feedback from the instructor and concern heads on day to day visit is important. Financial consideration is also a very important aspect. Recruitment of the personnel on proper field is essential.
Daily feedback and information via mail and phone is the way to communicate with managers.
Structuring of a proper chart to recruit and train them accordingly. Convey them the main strategy of the company and educate them how to follow the guidelines of the institution. Communicate with the retailers and brief them the need of the company and make them understand of the financial terms and conditions. Report to the directors of the progress of the following procedure is also important.
Alteration of the strategy will add some value to the organization. To avoid loss proper marketing of the concept is needed. Area of making profit should be clarified and understand in detail. Concept should be clear and communication must be proper.
Arranging a social conference may help to build up the perception and will help to gain some profit.
The main strategy of the company should be clear in all groups. Facilities and schedule should be mentioned properly. Time efficient schedule should be made. Guideline of the company should be followed by the instructor.
The Hazards are mainly communication gap, time consumption and structural issues. Company may loss revenue for any reason stated above so solve the issues as early as possible should be the right choice (Lewis and Grosser, 2012).
Communication gap due to the structural hierarchy of reporting may be occurring. The clear instruction of strategies should be communicated to each and everyone. The suggestion part should be open to all and the feedback of the instructors is very important to nullify the problems for further improvement.
Assessment of change needs
Recognizing areas where change requires
Propose alternatives for change
Assessment of propose alternatives
Implementation of change plan
Review of change
Consumer satisfaction and improved structure is very important to attract all the groups. Recruitment of professionals is also important. Continuous feedback should be taken from every type of groups. These help to find out the problems of the organization and also help to resolve it.
Execution of the strategies is very essential part. Communication from instructor to director should be clear. Problems should be solved as early as possible. Time of action should be reduced. Newer equipments should be provided and feedback should be taken from the customers.
Hahn, R. (2010). Designing Smarter Regulation with Improved Benefit-Cost Analysis. Journal of Benefit-Cost Analysis, 1(1).
Lai, S. (2014). A WBS-Based Plan Changeability Measurement Model for Reducing Software Project Change Risk. LNSE, pp.94-99.
Lewis, A. and Grosser, M. (2012). The Change Game: An Experiential Exercise Demonstrating Barriers to Change. Journal of Management Education, 36(5), pp.669-697.
Öner, M., Benson, C. and Göl BeÃ Å¸er, S. (2014). Linking Organizational Change Management and Organizational Foresight. Strat Change, 23(3-4), pp.185-203.
Torppa, C. and Smith, K. (2011). Organizational Change Management: A Test of the Effectiveness of a Communication Plan. Communication Research Reports, 28(1), pp.62-73.
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