Evaluation Of The Gym Program

891 Words4 Pages
Case 1
1. We used operation time to calculate the utilization of various facilities. Calculation is as below.

After analysing the calculated result, we found out that cardio equipment is over booked during peak hours in 2000 as per the five year growth trend, the gym membership is going to grow in future years. So in order to accommodate the future members the gym has to increase the capacity of the cardio equipment’s with 40%cushion capacity and the rest of the facilities which are nearing the 30% cushion rate should be next in line for capacity upgrading.
2. Expansionist strategy would be appropriate for the Fitness Plus gym. Since the gym is expecting new enrolment in January and that is also the peak period of the year. And according to the case if they need to increase the capacity that would take 4 month time for renovation. So in order to accommodate the new enrollment and the current member gym they need to increase the capacity of some of the facilities as per the cushion.
For the long time strategy the gym should adopt “wait and see” as it has to evaluate the effect of competition on their customer base.
- If it was not affecting, they should adopt continuous expansion strategy
- If it is affecting, they should stick with Wait and see strategy. 3. Capacity decision made were based on the capacity utilisation of the facilities provided by the gym. Since the gym financial stand point is not strong; only the over utilised facilities are planned for expansion.
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